Union Jack Oil PLC (AIM:UJO) cheered its latest revenue milestone at the Wressle field, which has now generated over US$18 million net to the company, since coming online for production in summer 2021.
Wressle, which has operated a single well so far, is currently averaging around 665 barrels of oil per day, Union Jack said in a statement.
This performance drives Union Jack, which owns 40% of the field, to be cash flow positive whilst covering all of the firm’s planned G&A, OPEX and CAPEX liabilities.
The company highlighted that it remains debt free, and as of 12 December it had more than £4.45 million of cash, short-term receivables and investments.
"The US$18,000,000 net revenues achieved to date from Wressle continue to bolster the company's balance sheet, complemented by additional cash-flow from the Keddington oilfield (55% owned by UJO)," said executive chairman of Union Jack, David Bramhill.
“Going forward, future production and revenue updates from Wressle will be reported on a quarterly basis.”
Bramhill, meanwhile, commented on Wressle’s performance following recent operations to bolster volumes.
"The Wressle-1 well has responded favourably to the new jet pump rate. The engineers may decide to further increase these rates whilst the well performance is continually being optimised to maximise oil recovery volumes,” he said.
He added: “The recently announced 263% increase in 2P reserves has led to a material upgrade in value of the Wressle development and we look forward to reporting on further progress at our flagship project."