Company
LON:UJO
Union Jack Oil PLC is an oil and gas company with a focus on onshore production, development, exploration and investment opportunities within the United Kingdom and the United States of America hydrocarbon sector.
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"We are highly encouraged by these initial results from an ongoing multi-well appraisal testing and drilling campaign at West Newton," executive chairman David Bramhill said
“Wressle will boost the company’s production profile and cash flow position once on commercial production, and today’s update reinforces the long-term potential in our view,” analyst Sam Wahab said
"Wressle is still at a very early stage in its development and considerable upside potential remains," David Bramhill said
Clean-up and testing continues at the the West Newton B-1Z well in Yorkshire
"This study is an excellent overview of the green credentials for any potential future development decision at Biscathorpe,” said executive chairman David Bramhill.
At Wressle the team now have full use of a 2,000 barrel storage facility
"The planned testing programmes at the West Newton B and A sites are the next milestone events in determining the development potential of West Newton,” said David Bramhill
The planned programme is due to have a dramatic effect on the company's cash-generating capabilities
Stockbroker SP Angel highlighted several near-term valuation catalysts for Union Jack Oil.
"The company remains in sound financial health," said executive chairman David Bramhill
A testing programme is due to get underway at West Newton this month
The short to medium term focus will be on maturing this asset further to commercialisation, analysts said
Results from the well to date are described as "highly encouraging" and the next phase of work begins in May.
April's work will precede an extended well test which and inform a new competent persons report.
It comes as the partners are advancing the project towards a formal planning application.
The core of the portfolio is in the East Midlands Basin and Yorkshire
Union Jack Oil is buying the royalty from Cambridge Petroleum Royalties for US$130,000 using its cash resources.
It comes ahead of a planned well programme later this year, subject to planning approval.
The start of production at Wressle is a long-awaited milestone for the company as it will significantly increase total volume
"There remains considerable upside in the opinion of Union Jack`s management especially with the Ellerby and Spring Hill Prospects being on-trend with West Newton," said chairman David Bramhill
