Union Jack Oil plc (LON:UJO) a UK focused onshore hydrocarbon production, development and exploration company, has offered an update in respect of ongoing operations and landmark net revenues at the Wressle hydrocarbon development, located within licences PEDL180 and PEDL182 in North Lincolnshire, on the western margin of the Humber Basin.
Union Jack holds a 40% economic interest in this development.
Highlights
· Landmark US$1,000,000 net revenues generated to Union Jack since re-commencement of production on 19 August 2021
· Current daily production figures well in-excess of prognosed 500 barrels of oil per day from the Ashover Grit reservoir
· Elevated production rates maintained during well test on significantly restricted choke setting and sustained high flowing wellhead pressure
· Well is producing under natural flow
· Clean up continuing and full potential yet to be achieved
· Zero water cut
· Staged site upgrades have commenced
· Wressle production highly profitable at current oil prices
· Further development and production at Wressle can be achieved from the Wingfield Flags and Penistone Flags formations
· Gaffney Cline Competent Person’s Report commissioned by Union Jack ongoing
Executive Chairman of Union Jack Oil, David Bramhill, commented: “The net revenues exceeding US$1,000,000 within a relatively short timeframe is financially transformational for Union Jack.
“Our acquisition of further interests in Wressle over the last couple of years from just 8.33% to being the major equity holder with 40% is now showing material results and gives us increased confidence that the Company is set to deliver on its aim to become a self-sustainable entity in due course.
“Union Jack has four cash generating projects within its balanced portfolio and revenues for year end 2021 are guaranteed to eclipse those reported upon in 2020 and for the six months ended 30 June 2021.
“We believe that Wressle holds considerable further upside and we look forward to reporting on progress in due course.”
