Union Jack Oil PLC (LON:UJO) boss David Bramhill told investors to expect a ‘particularly active’ next six months.
The UJO chairman’s made the comments when the UK-focussed junior oiler released its first half results, in which it highlighted that it remained debt free and had around £1.9mln of cash.
WATCH: Union Jack Oil sizing up new projects as they launch into 'particularly busy' second half
It said it has enough funds to ‘comfortably cover’ the company’s participation in the upcoming Holmwood-1 and Biscathorpe-2 conventional wells, as well as the Wressle development (should the project get the green light).
UJO says success with one or more of the projects could have a transformative effect on the company.
The development of the Wressle field has been held up by a dispute over planning permission, and, the group of oil companies behind the project are working through appeals.
READ: Union Jack Oil's Biscathorpe exploration project boosted by environmental approval
Bramhill, in the statement, said: "The next six months for Union Jack are expected to be particularly active with drilling of the high-impact Holmwood-1 and Biscathorpe-2 conventional exploration wells,” Bramhill said.
“We believe our onshore focus and low-cost business model, combined with actively managing the risk profile of each asset, ensures we meet our stated objective of building a balanced, low-risk portfolio combining appropriate components of production, appraisal, discovery and exploration.”
He added: “I look forward to reporting further on the progress of our existing projects and any potential new project we bring to our portfolio.”
Next opportunities coming onto horizon
“While there is little doubt that there has been disappointment surrounding the continued delays to Wressle, the remainder of the portfolio marches into the horizon,” said Zac Phillips, analyst at SP Angel.
WATCH: Union Jack Oil 'one of the lucky ones' - executive chairman David Bramhill
“Most notable of these is the Holmwood well in the Weald basin, but also the Biscathorpe appraisal well.
“While there has been much hype surrounding the Kimmeridge potential of the Weald Basin, it must be remembered that Holmwood is a conventional prospect first and foremost, but will provide a useful data point on the Kimmeridge, not just for UJO but for the wider shale potential of the basin.”
WH Ireland analyst Brendan Long, meanwhile, said: “Holmwood-1 is the exception to our rule that we don’t like wells targeting geologically independent stacked targets.
“Generally, we believe, that the chances of two independent targets sitting on top of one another is exceedingly remote.
Long added: “We like Holmwood-1 because talking to many of the participants, it is actually being drilled for the conventional target; however, with an eye on the success of the Horsehill-1 well (tested at 1,688 b/d) and with oil discovered at the Broadford Bridge-1 well (with production testing progressing) through our coverage of UK Oil & Gas, we actually are almost 100% focused on the implications of Holmwood for the Kimmeridge Limestone play – for us a stand-alone good reason to drill this well. So it is a situation where there are truly two independent targets.”
-- Updated to include analyst comments --