Sign up UNITED KINGDOM
Proactive Investors - Run By Investors For Investors

Wressle field start-up a key focus for Union Jack Oil in 2016

Wressle is expected to start production at rates of around 500 barrels of oil per day later this year, and it would deliver Union Jack Oil important cash-flows.
onshore drilling operation
UJO has a 8.3% stake in Wressle.

New ‘late stage’ acquisition opportunities continue to be considered, but, the upcoming start-up of the Wressle field, in in the East Midlands, is set to be the real highlight for UK onshore oil investor Union Jack Oil PLC (LON:UJO).

Egdon Resources Plc (LON:EDR), the operator of the Wressle field, is currently awaiting final approval for the development which could potentially see first oil come in the second half of 2016.

Wressle is expected to start production at rates of around 500 barrels of oil per day.

Union Jack has 8.3% stake in Wressle, which has become something of a cornerstone in the portfolio.

It also has interests in other onshore UK ventures, has an arrangement in place with Egdon and continuously looks to participate in new projects as they approach drilling.

At end April, Union Jack reported a cash balance in excess of £2.6mln with no debt.

Wressle is “marvellous” for Union Jack

Wressle moving to production is marvellous for Union Jack Oil, chairman David Bramhill highlighted in an interview.

“It means cashflow, and for an exploration company that doesn’t happen very often.

“So, we’re really, really pleased that it is moving forward nicely. The operator is fast forwarding production, so hopefully in the second half of the year we can call ourselves a genuine producer with good cashflow.”

As well as Wressle, Union Jack has a 10% stake in the licence that includes the Keddington Oilfield and stakes in other fields including Burton on the Wolds, Laughton, Biscathorpe and North Kelsey – all onshore UK prospects.

 

New acquisitions are being targeted

Union Jack has a fairly defined acquisition strategy: “We try to save time by latching on to [exploration] projects that are at a late stage, where they are almost drill ready,” Bramhill adds.

“Instead of getting the project from scratch, working it up into a prospect and getting it drill ready plus planning permission - we pay our promote and we invest in the drilling. Sometimes it works, sometimes it doesn’t.

“There are some very, very nice wells going to be drilled in the future and we’ll be looking to get involved in that, particularly in southern England.”

View full UJO profile View Profile

Union Jack Oil PLC Timeline

Related Articles

picture of oil facilities
August 14 2017
Echo has ‘two fantastic opportunities’ in Huayco and Rio Salado in Bolivia
Power stations
May 31 2017
"We see this statement as evidence that the company has overcome the one-off events in Q3," said Cantor Fitzgerald
A Highland oil rig
September 08 2017
WH Ireland's analysts noted "that frack crews today are in demand and the company is clearly being prioritised by service companies not known for providing favours to junior oil companies”

No investment advice

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable or advisable for any specific person. You further understand that none of the information providers or their affiliates will advise you personally concerning the nature, potential, advisability, value or suitability of any particular security, portfolio of securities, transaction, investment strategy, or other matter.

You understand that the Site may contain opinions from time to time with regard to securities mentioned in other products, including company related products, and that those opinions may be different from those obtained by using another product related to the Company. You understand and agree that contributors may write about securities in which they or their firms have a position, and that they may trade such securities for their own account. In cases where the position is held at the time of publication and such position is known to the Company, appropriate disclosure is made. However, you understand and agree that at the time of any transaction that you make, one or more contributors may have a position in the securities written about. You understand that price and other data is supplied by sources believed to be reliable, that the calculations herein are made using such data, and that neither such data nor such calculations are guaranteed by these sources, the Company, the information providers or any other person or entity, and may not be complete or accurate.

From time to time, reference may be made in our marketing materials to prior articles and opinions we have published. These references may be selective, may reference only a portion of an article or recommendation, and are likely not to be current. As markets change continuously, previously published information and data may not be current and should not be relied upon.

© Proactive Investors 2017

Proactive Investor UK Limited, trading as “Proactiveinvestors United Kingdom”, is Authorised and regulated by the Financial Conduct Authority.
Registered in England with Company Registration number 05639690. Group VAT registration number 872070825 FCA Registration number 559082. You can contact us here.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use