Union Jack Oil PLC (LON:UJO) in its results statement told investors it remains ‘highly positive’ as it looks to its future prospects.
"The company, during 2020 and to date, has advanced its key projects, executed drilling, development and appraisal activity, supported by technical evaluation and analysis provided by our own highly competent technical team, that has resulted in an accretion in the company's asset value and provided greater clarity on the next steps towards commerciality,” executive chairman David Bramhill said.
During the year progress was made in key projects, especially West Newton in Yorkshire where presently testing is imminent for two wells drilled in 2020. At the Wressle field, meanwhile, oil is free flowing and is in continuous production test conditions.
In terms of financial results, the company said revenue increased to £1.58mln, from £1.36mln. The company reported an operating loss of £1.88mln as a result of higher admin costs amid technical work at the West Newton, Wressle, Biscathorpe and Keddington assets.
Union Jack noted that as of May 1 it had £5.7mln of cash – not including £1mln loan receivables and royalty accruals due in 2021 and 2022 – and it highlighted that it remains fully funded for all current development and well testing commitments. It remains debt free.
"The company remains in sound financial health, with a robust balance sheet, continues to be debt-free, with ample cash reserves to fund its well testing and planned development commitments, offering shareholders ongoing and significant scope for growth,” Bramhill added.
"The future of Union Jack remains bright."