Union Jack Oil PLC (AIM:UJO) said the £1mln in net revenues it generated from the Wressle field in North Lincolnshire since mid-August was "financially transformational" and 20201 revenue is "guaranteed to eclipse" the previous year.
Daily production remains “well in-excess” of the original 500 barrels of oil per day target for the field, the oil and gas explorer told investors and the well continues to produce under natural flow. Production is highly profitable at current oil prices, Union Jack added.
"The net revenues exceeding US$1,000,000 within a relatively short timeframe is financially transformational for Union Jack,” said executive chair David Bramhill.
"Our acquisition of further interests in Wressle over the last couple of years from just 8.33% to being the major equity holder with 40% is now showing material results and gives us increased confidence that the company is set to deliver on its aim to become a self-sustainable entity in due course.”
He added: "We believe that Wressle holds considerable further upside and we look forward to reporting on progress in due course."
According to Bramhill, Union Jack has four cash-generating projects within its balanced portfolio and revenues for 2021 are guaranteed to eclipse those reported for 2020.