Union Jack Oil PLC (AIM:UJO) today celebrates its latest revenue generation milestone, as it told investors that it has now brought in US$8mln from the sale of oil from the Wressle field in Lincolnshire.
The Wressle production well continues to flow under natural flow conditions, with zero water cut, the company added in a statement. Union Jack added that it continues to be cash flow positive (covering off all G&A, OPEX and contracted or planned CAPEX costs for the next 12 months).
As of July 24, it had £9.15mln in cash balances and short-term receivables.
The company confirmed to investors that is has posted a maiden profit for the first-half of 2022 and added that due to its anticipated capital investment programme, which creates tax reliefs, it does not expect any material negative impacts from the UK government’s oil and gas windfall tax.
"Since the last production update published during June 2022, another impressive production performance from the Wressle-1 well has been recorded and the trend remains positive,” said executive chair David Bramhill.
He added: "The Gaffney Cline report continues to be updated and upgraded to reflect increased production rates and also incorporate other ongoing positive reservoir modelling and production profiling exercises into its final analysis.
"Since Gaffney Cline commenced their report, oil production at Wressle has increased by circa 45% and, accordingly their report is being updated to reflect these new positive developments and is now using a reference date of 30 June 2022.
"In addition, Gaffney Cline are compiling three illustrative production scenarios for the Wressle oilfield, indicating average oil production plateaus for the low, medium and high cases, showing the conceptual production curves in each case for the remaining planning period of 13 years.
"Gaffney Cline have also been instructed to comment on any possible untapped resources at the Wressle-1 well that may be present. The report is currently being finalised and the results will be announced in due course."