Union Jack Oil plc (LON:UJO) is the topic of conversation when DirectorsTalk CEO Darren Turgel caught up with Arden Partners Head of Research Daniel Slater.
Union Jack provided an update today, what were the key takeaways?
The key new information here was more detail around plans for the company’s Wressle field. The statement reported that gas is expected to be used for onsite power generation in early 2023, before then being upgraded for local power export. This should allow greater oil production from the Wressle field, boosting production and cash flows for Union Jack.
What newsflow do you hope to see from the company over the coming months?
We hope to see works at Wressle progress to allow oil production to increase, alongside more detail and timing for development of the Penistone Flags reservoir. We are also expecting the new horizontal well on West Newton during 2023 (a key workstream for this asset), and then potentially new wells on Biscathorpe and North Kelsey. As such, there is potential for a full 2023 programme, funded from the Wressle cash flows.
How do you see the outlook for the company?
We look for Wressle to continue providing cash for both further development of the asset itself, but also deployment elsewhere in the portfolio, including on West Newton, Biscathorpe and North Kelsey. This should generate a diverse set of work programme catalysts for the stock, while also helping underpin future growth.
Union Jack Oil plc (LON: UJO) is an onshore oil and gas exploration company with a focus on drilling, development and investment opportunities in the United Kingdom hydrocarbon sector listed on the London Stock Exchange AIM market.
