Union Jack Oil achieves $15m revenue landmark from Wressle

10th May 2023 13:14

(Sharecast News) - Union Jack Oil announced on Wednesday that it has achieved material landmark net revenues of over $15m from the Wressle hydrocarbon development, located within licences PEDL180 and PEDL182 in North Lincolnshire, on the western margin of the Humber Basin.

The AIM-traded company currently holds a 40% economic interest in the development.

It explained that, since the restart of production in August 2021, Union Jack had generated record revenues from the Wressle hydrocarbon development.

The well was producing under natural flow, with zero water cut, and the company was cash flow positive, covering all general and administrative, operational, and contracted or planned capital expenditure costs, including any drilling activities, for at least the next 12 months.

As of 9 May, the company's cash balances, short-term receivables, and liquid investments totalled more than £10.5m, as it remained debt-free.

"Revenues from Wressle continue to bolster the company's balance sheet," said Union Jack executive chairman David Bramhill.

"Since the last production update, another consistent and impressive performance from the

Wressle-1 well has been recorded and the trend during 2023 remains positive with materially higher production rates than those seen on a like-for-like basis during the same time period in 2022."

At 1134 BST, shares in Union Jack Oil were up 1.74% at 23.4p.

Reporting by Josh White for Sharecast.com.