Union Jack Oil PLC (AIM:UJO) told investors in its interim results that it retains a robust balance sheet, and remains cash generative and debt free.
The small-cap oilier reported revenue of £3.58 million and gross profit of £1.6 million largely driven by continuing successful operations at the Wressle field, onshore UK.
In the statement, Union Jack highlighted that Wressle is now among the most productive conventional producing UK onshore oilfields with nearly 500,000 barrels of high-quality oil produced from the Ashover Grit formation alone.
It also highlighted that new wells are being planned for Wressle, along with the Keddington and West Newton projects.
Meanwhile, it continues to evaluate new projects that offer short-term cash flow, rapid payback, and accretive value.
Union Jack said it had £9.25 million of cash, receivables, and liquid investments as of 8 September.
"Union Jack remains in a strong financial position with a combination of consistent cash flows, principally from our flagship asset at Wressle, plus significant future upside potential from our balanced portfolio, giving Union Jack the confidence to support a forward drilling and development programme on our key projects that is being planned for the remainder of 2023 and beyond,” said executive chair David Bramhill.
"Union Jack continues to be cash flow positive, covering all current G&A, OPEX and contracted or planned CAPEX costs, including any drilling activities for at least the next 12 months, without recourse to the capital markets.”
"The future of Union Jack remains bright."