Union Jack Oil plc (LON:UJO), provided yesterday its summary of the Competent Person’s Report for the Wressle field and Broughton North Prospect. DirectorsTalk caught up with Daniel Slater CFA, Director of Research at Zeus Capital for his thoughts.
Union Jack has released the results of a new CPR from industry consultant ERCE for its Wressle field. What were the key takeaways?
Wressle reserves have increased significantly, principally as a result of reclassification of Penistone Flags 2C resources into 2P reserves, alongside a technical upgrade to Ashover Grit/Wingfield Flags reserves, helping make up for past production. In our view, the report helps further highlight the attractiveness of Wressle as an asset for Union Jack, while also validating benefits to be had from the ongoing work programme on the field. We look for further news on progress of the work programme, and new production volumes, during 2024.
What changes have been made to your forecasts as a result?
We had already accounted for new Wressle production volumes during 2024, helping compensate for natural decline from existing production.
How do you see the outlook for Union Jack?
We look forward to a busy 2024 for Union Jack, with planned work programmes on Wressle and West Newton, and progress towards new exploration drilling on Biscathorpe and North Kelsey. This should make for plenty of material news flow, with funding from existing cash and ongoing Wressle cash flows.
Union Jack Oil PLC is a UK-based onshore exploration and production company that focuses on acquiring, exploring, and developing oil and gas assets. The company has a portfolio of interests in various exploration and production licenses in the UK.
