Sign up UNITED KINGDOM
Proactive Investors - Run By Investors For Investors
Why invest in UJO?
Union Jack Oil PLC: THE INVESTMENT CASE

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
INVESTMENT OVERVIEW: UJO The Big Picture
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.”

Jamie_55a91591db06b.jpg


Register here to be notified of future UJO Company articles
View full UJO profile

Union Jack Oil PLC Timeline

Related Articles

oilOnshore.jpg
January 23 2017
Chief executive Matthew Idiens said "with the change in political regime in the US, we feel the incoming administration will be very supportive of our industry."
genex-power_Simon-Kidston-757.jpg
November 23 2016
Simon Kidston presented at Mines and Money Melbourne.
onshore oil operation
March 16 2017
“We are now in the process of starting to unlock the inherent value in our asset base,” said chief executive Andrew Knott.

© 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