Union Jack Oil PLC (LON:UJO) Executive Chairman David Bramhill caught up with DirectorsTalk for an exclusive interview to discuss the operational and financial highlights for 2017 and how things have progressed since year end.
Q1: David, final results for the year-end 31st December, seems like you’ve had quite a busy year. What were the operational highlights?
A1: When you look at the operational highlights, first of all I’ll mention the disappointments and the disappointment really has been with Wressle not being able to a lovely cash production and cash flow from this. When you look at what we’ve achieved for the year, you think ‘oh god, we’ve done this, we’ve done that’ so on balance, I think it’s been a pretty good year with the operational highlights.
We’ve expanded the portfolio with interest in Biscathorpe, shareholders probably know and people listening, Biscathorpe is probably the next well we have to drill which is good upside potential, we look forward to drilling that.
By the acquisition of the interest in Wressle with proven reserves, we’ve increased our proven resources and reserves, again a great big plus for us. We started off an exploration company, we’re now a production company.
The ore production profile expanded via Fiskerton Airfield and Keddington so we’re in good shape on that, every bit helps.
More importantly, the drilling in two significant prospects, Biscathorpe-2 and the Holmwood and I think Biscathorpe will be the first in line there.
Q2: What key points should investors note in terms of the financial highlights?
A2: We’re not cash flow supportive as yet but that is our objective. Will we get there? I’m sure we will. One stroke with Wressle, we would be that company, years of hard work would be brought to the front and we would be a profit-making company, I can quite safely say that.
We’ve got a cash balance in excess of £2 million which will cover us going forward in the next 12 months plus and our drilling. We had a placing for £1.25 million in March and I think the most important thing is we remain debt free which is, a lot of people know, once you get too much debt, you’ve got major issues. So, we’re, I think, a really nice clean company.
Q3: Today’s results obviously focus on last year, how have things progressed since year end?
A3: Very well. As I say, we’ve raised our money which is our petrol, that’s our petrol that keeps the company doing, we’re looking at new deals and we’ve progressed the business and we’re looking at more acquisitions.
Basically, with accounts, we’re a small team, we haven’t got offices in London or anywhere, I operate out of an office in North Devon and in Bath finally one day a week and we haven’t got a massive team. I take the brunt of pulling everything together on the Annual Report and the RNS’s, now this is out it frees me up, I can do what I really should be doing, finding some more deals so hopefully that’s the plan over the next few years.