Union Jack Oil PLC (AIM:UJO, OTCQB:UJOGF) executive chair David Bramhill has highlighted ":solid and profitable" first-half results.
The figures confirm the growing junior oil firm’s “resilience, both financially and operationally”, whilst it expands with investments in the US and advances plans to build-out its key onshore UK operations at the Wressle field.
"Union Jack's entry into the USA has to date vindicated the board's decision to secure complementary international growth projects, designed to supplement existing domestic cash flow, without the punitive tax regime now being seen within the UK,” Bramhill said in the results statement.
"The board is optimistic that in the medium-term, Union Jack will experience exceptional growth assisted by its expanding portfolio of multiple cash-generating projects in the UK and USA.
Revenues from first-half oil operations amounted to £2.34 million, and the company reported a gross profit of £1.34 million whilst net profit amounted to £788,996.
The company noted that it remains debt-free and paid a dividend of 0.25p per share in July.
Operationally, much of the focus has been on the new wells in Oklahoma, where the company has seen early success with its initial investments.
“It is not difficult to be confident of the opportunities presented in Oklahoma, the scene of our rapid growth strategy, where we are already seeing income from our 45% interest in the Andrews field and the start of a three well drilling campaign, planned for Q4 2024,” Bramhill added.
"Union Jack's success in the USA, from a standing start in early 2024, highlights the ease of entry and ability to execute business there, justifying the Board's decision to seek further growth opportunities internationally to bolster the Company's flagship production and appraisal assets in the UK.
"The foundations of Union Jack's growth plan in the USA are being laid swiftly and unhindered.”
In the UK, meanwhile, Union Jack and its joint venture partners are advancing plans to add new wells to the field and add gas-processing to further enhance production operations.
Bramhill today said that Wressle continues to have “significant material upside which will support the company with revenues for at least another decade".
More broadly, the Union Jack boss added: “The board has confidence in the significant increase in drilling, appraisal and development activity now planned in the pursuit of growth from our balanced UK and USA portfolios where each has the potential for significant value creation for shareholders.
“We believe our heightened drilling and development activity and the expected additional news-flow generated, combined with effective investor engagement on both sides of the Atlantic, will continue to attract the ongoing support of our existing shareholders and the attention of new investors, broadening the appeal of the company to a wider audience.
"The future of Union Jack remains bright."