Union Jack Oil PLC (LON:UJO) told investors, in its interim results statement, that it is confident and optimistic as it remains on-track for first production from the Wressle field, located in North Lincolnshire before the end of this year.
The onshore UK oiler ended the six months to June 30, 2020, with £4.6mln of cash, was debt-free and fully funded for its planned drilling, testing and development programmes.
"We have seen significant progress at our three key project interests, namely West Newton, Wressle and Biscathorpe,” David Bramhill, Union Jack's executive chairman said in the results statement.
“Developments at these three material assets in which we have meaningful economic interests has already generated a steady stream of news flow during 2020, which can be expected to continue throughout the remainder of the year and beyond.
"The past six months, and the subsequent period to this half-yearly report, has seen significant progress and positive developments that augurs well for the execution of our strategy in delivering material growth in the medium term and achieving our goal of building a sustainable, UK onshore focused, mid-tier conventional hydrocarbon producer,” he added.
During the period, Union Jack acquired an additional 12.5% stake in Wressle, increasing its interest to 40%.
It also dealt into a larger stake in the Biscathorpe asset, picking up 3% to take its interest to 30%. It, meanwhile, described Biscathorpe as one of the UK's largest onshore un-appraised conventional hydrocarbon targets.
Well drilling is presently imminent in the West Newton B-1 well while the West Newton A well is currently slated to undergo an extended well test programme.