Union Jack Oil books US$3mln of revenue from Wressle field

Union Jack Oil PLC said its net revenues from the Wressle field in North Lincolnshire have reached US$3mln since test production started in August.

The oil and gas group, which holds a 40% economic interest in Wressle, said current daily production ranges from 600 to in excess of 700 barrels of oil per day from the Ashover Grit reservoir, constrained on a restricted choke

The well continues to produce under natural flow, it added, with zero water cut and with good progress being made on the staged site upgrades.

Oil revenues for the year to 31 December 2021 will be in excess of £1.89mln (2020 audited, £158,000), the statement added.

Union Jack added it continues to be cash flow positive covering all corporate, administrative and project operating costs with a cash balance on 21 February of £6.16mln.

That cash position will enable it to make an early settlement of the £2.1mln consideration owed for its acquisition of 25% of the licences containing Wressle, the AIM-listed group said.

David Bramhill, executive chairman, added: " The   revenues of in excess of US$3,000,000 to Union Jack from Wressle, whilst under test production, are highly positive for the company, which remains in robust financial health as the above figures illustrate.

"We believe that Wressle holds significant further upside which will be demonstrated over the foreseeable future, and we look forward to reporting on progress in respect of site upgrades and achieving optimum production rates in due course.”

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