Union Jack Oil PLC (AIM:UJO) executive chair David Bramhill told investors his confidence in the company’s future “remains highly positive”, as the UK onshore oil firm released financial results for 2021.
Driven by the successful Wressle field, oil revenues increased by over 1,000% during the year and the company saw a maiden gross profit on oil sales.
Wressle production resumed in August, following a successful proppant-squeeze programmes, and quickly began to exceed expectations (including instantaneous gross rates exceeding 1,000 bopd).
Revenue from oil sales amounted to £1.89mln for 2021, up from £158,000 in the year before, and in 2022 to date, the company has so far recorded £2.87mln of net revenues.
As of May 9, Union Jack had £7.54mln of cash. It was debt free and was funded for all operational and all contracted and planned capital spending for at least 12 months.
Bramhill highlighted that Union Jack is in sound financial health.
"During 2021 and to date, the company has advanced a number of its key projects, especially at Wressle which, as stated earlier, have been transformational financially with substantial revenues and indications that the Wressle journey has only just commenced,” he said in the statement.
"The latest results at West Newton are highly encouraging regarding the prospects of the significant hydrocarbon discoveries made to date and their development potential, following an extensive testing and investigative programme conducted on both sides of the Atlantic by industry leading geological and geochemical consultancies.
"I remain confident that future news arising from our well-balanced portfolio containing relevant components of production, development, appraisal and exploration will continue to vindicate the board's unflinching optimism in respect of our company's focused strategy.”