Union Jack’s hydrocarbon production at its flagship Wressle project is making Shore Capital’s estimates look conservative, said the broker.
Analysts at the investment bank had estimated production of 750 barrels of oil per day in its previously published forecasts.
However, the broker believes today’s news reinforces the belief that its own estimates for the financial year are “looking conservative.”
This is down to ongoing site upgrades, which include the installation of microturbines, as well as executive chairman David Bramhill stating that “the trend as seen throughout 2022 and the start of 2023 remains positive.”
The broker added that today’s update is “encouraging and essentially in line with our existing understanding and expectations.”
Although shares are trading below prior highs, Shore Capital remains confident in the investment case.
“Our forecasts continue to indicate a robust financial performance,” said the broker.
Earlier today, Union Jack cheered its latest revenue landmark at the Wressle field where net revenues have now surpassed US$13mln for the small-cap onshore oiler.
The company noted that the one-well development continues to produce at record rates, under natural flow with zero water cut.
Operationally, meanwhile, work to upgrade site facilities are ongoing and plans to upgrade the project are also progressing.