Union Jack Oil plc (LON:UJO), a UK focused onshore conventional oil and gas production, development and exploration company, has today announced its unaudited results for the Half Year ended 30 June 2019.
David Bramhill, Executive Chairman of Union Jack commented:
“We have seen significant progress at our three key project interests, namely West Newton, Biscathorpe and Wressle. Developments at these three assets can be expected to provide an active stream of newsflow throughout the remainder of 2019 and beyond.
“At West Newton A-2, the result of the Extended Well Test has the potential to dramatically transform Union Jack. We anticipate further progress in our ongoing technical evaluation and appraisal of the West Newton A-1 and A-2 discoveries in the coming months that will help us confirm that West Newton is one of the largest onshore UK oil and gas ventures in recent decades.
“An ongoing technical evaluation at Biscathorpe also has the potential to identify a material resource with significant upside, as in the case of West Newton.
“Assuming our appeal at Wressle is supported and production from Wressle is established, under the current oil price environment, Wressle would provide material cash flows after project operating costs net to Union Jack. Bearing in mind Union Jack’s modest annual general and administrative costs, Wressle is expected to convert Union Jack into a cash flow positive company at the corporate level.
“The Board remains both confident and optimistic and the future of Union Jack looks bright.”
Highlights
• The successful drilling of the West Newton A-2 conventional appraisal well where initial petrophysical evaluation has identified a gross oil column of 45 metres underlying a gross gas column of approximately 20 metres within the Kirkham Abbey formation
• Following the drilling of the Biscathorpe-2 conventional well, confirmation by independent consultants Applied Petroleum Technology (UK) Limited (“APT”) of the likely presence of a 35 metre live oil column with API Gravity oil of 33º to 34º in the top of the Dinantian interval
• Data evaluated at Biscathorpe at the base of the analysed section, and wellsite readings, indicate possible additional pay at the base of the Dinantian interval
• Union Jack management’s view is that Biscathorpe remains one of the UK’s largest onshore un-appraised conventional hydrocarbon targets
• On development plans for the Wressle oil discovery, the encouraging decision by the North Lincolnshire Council that it will not be presenting evidence at the Public Enquiry to be held on 5 November 2019, and will withdraw its case in respect of the appeal subject to the agreement of acceptable planning conditions
• Cash balance of in excess of £2.8 million as at 20 September 2019
• Debt free
Competent Person’s Statement
In accordance with the “AIM Rules – Note for Mining and Oil and Gas Companies”, the information contained within this announcement has been reviewed and signed off by Graham Bull, Non-Executive Director, who has over 46 years of international oil and gas industry experience.
