Union Jack Oil PLC (AIM:UJO) has updated on production from the Wressle field in Lincolnshire, which continues to be above expectations.
Gross production rates exceed 950 barrels oil equivalent per day, comprising 884 barrels of oil and 480,000 cubic feet of gas per day, on a significantly restricted choke and with zero water cut.
The full potential production flow has yet to be fully tested, the company said.
"Wressle is rapidly demonstrating its deliverability and the results achieved so far augur well for the future and this development is set to become a major contributor in the company's quest to achieve mid-tier status in due course,” said chairman David Bramhill.
"Current production rates indicate that Wressle is currently the second-largest producing oilfield, in terms of daily production, in onshore UK after Wytch Farm, and we are confident that the well has materially more to offer during 2021 and beyond.”
Union Jack meanwhile noted that it has received a revision to the project’s environmental permit, to include a combustion plant that will facilitate gas-to-electric generation. Additionally, consultant Gaffney Cline & Associates has now been hired by Union Jack to prepare an updated competent persons report.
"The revision of the Environmental permit now facilitates the potential of an additional revenue stream from electricity generation in due course,” Bramhill added.
Since Wressle came back online in August the asset has generated some US$480,000 of net revenue to Union Jack (which owns a 40% interest in the field).
After Monday’s market close, Union Jack issued a brief statement responding to what is described as market speculation concerning the Claymore Piper Complex Royal Units asset, specifically noting talks to acquiring an additional 25% stake in the project.
It noted, in the brief statement, that the potential vendors of the stake are two North American financial entities that are not associated with Cambridge Petroleum Royalties Limited, and no related party considerations apply to the proposed transaction.