Union Jack Oil PLC (AIM:UJO) has told investors it looks forward to an active programme at the Wressle field in Lincolnshire this year as the field continues to deliver “record consistent production”.
Wressle has had cumulative production of 341,000 (as of 12 January 2023), Union Jack highlighted in a statement, and it is presently yielding between 825 and 850 barrels of oil per day, which remains significantly higher than the original expectations for the well.
Buoyed by this success, operations are ongoing to be optimised further. The installation of microturbines to monetise gas flows will add to revenues but also support better oil production as it will take care of constraints related to gas-flaring which will no longer be necessary. It is expected that this alone could boost oil production by around 20%.
At the same time, the Wressle partners are progressing plans to drill a new well at the field with the Penistone Flags development well slated for the second half of 2023 subject to regulatory and planning consents.
Also underway is a new competent persons report which will incorporate the data from a successful 2022 including “the new field interpretation and exceptional production performance”, Union Jack highlighted.
The company's executive chair David Bramhill, in Tuesday’s statement, said: “Union Jack continues to generate robust revenues from Wressle which is currently delivering record consistent oil production, expected to be even further enhanced when the microturbines are fully commissioned and operational.
"We also expect a material uplift in production as the Penistone Flags development and gas-to-wire operations unfold.
"What is encouraging from this Egdon (the Wressle operator) update is the active drilling programme anticipated during 2023. Union Jack are fully funded for these operations without recourse to the capital markets."