Union Jack Oil PLC (LON:UJO) executive chair David Bramhill highlighted “significant progress” across its three key projects – West Newton, Biscathorpe and Wressle – as the onshore oiler released its half-yearly results.
“Developments at these three assets can be expected to provide an active stream of newsflow throughout the remainder of 2019 and beyond,” Bramhill said in a statement.
He added: “The board remains both confident and optimistic and the future of Union Jack looks bright."
The growing small-cap firm confirmed it had £2.8mln of cash, as of 20 September, and it remains debt free.
It generated £76,409 of revenue during the six months ended 30 June and reported a gross loss of £44,644. The net loss for the period was marked at £484,068, including admin expenses of £554,476.
West Newton well success
The drilling programme at the West Newton project was a highlight of the first half with the company partnered in a successful conventional appraisal well which confirmed a 45-metre gross oil column plus a 20-metre of gas column.
An extended well test programme was recently suspended, temporarily, in order to incorporate the confirmed gas into the development planning.
Bramhill highlighted: "At West Newton A-2, the result of the extended well test has the potential to dramatically transform Union Jack.
We anticipate further progress in our ongoing technical evaluation and appraisal of the West Newton A-1 and A-2 discoveries in the coming months that will help us confirm that West Newton is one of the largest onshore UK oil and gas ventures in recent decades.”
An assessment was made of the previously-drilled Biscathorpe-2 well with independent consultants Applied Petroleum Technology confirming the presence of a 35-metre live oil column at the top of the Dinantian interval. The evaluation also indicated possible oil pay at the base of the Dinantian.
UJO believes Biscathorpe remains “one of the UK's largest onshore un-appraised conventional hydrocarbon targets.”
Wressle planning appeals
UJO highlighted an “encouraging” decision by the North Lincolnshire Council which now won’t be presenting evidence at the Public Enquiry to be held on 5 November 2019 and that the council will withdraw its case in respect of the appeal, subject to the agreement of acceptable planning conditions.
"Assuming our appeal at Wressle is supported and production from Wressle is established, under the current oil price environment, Wressle would provide material cash flows after project operating costs net to Union Jack,” Bramhill highlighted.
“Bearing in mind Union Jack's modest annual general and administrative costs, Wressle is expected to convert Union Jack into a cash flow positive company at the corporate level.”