Net revenue

Union Jack reaches $3 million in net revenue thanks to Wressle

Union Jack oil announced on Tuesday that “significant” net revenues had been realized from the development of Wressle, located in the PEDL180 and PEDL182 licenses in north Lincolnshire, on the western margin of the Humber Basin.

The AIM-listed company holds a 40% economic interest in the development.

He said a record $3m (£2.21m) in revenue had been generated for Union Jack since production restarted on August 19.

Current daily production figures ranged from 600 to more than 700 barrels of oil per day from the Ashover Grit reservoir, constrained by a restricted choke.

Union Jack said the well continued to produce under natural flow with no water cuts, while staged site upgrades were progressing well.

The company said its cash flow was still positive, covering all business operating, administrative and project costs, adding that as of February 21, cash balances stood at $6.16 million. pounds sterling and claims at £2.07 million.

Due to increased revenue and the effect on cash balances, Union Jack said it intended to make an early settlement to Calmar of £2.08million around March 1 , for the acquisitions of 25% of PEDL180 and PEDL182, which contain the development of Wressle. .

This, the board said, would eliminate all major current trade debts.

Oil revenue as of December 31, 2021, meanwhile, would be at least £1.89m, up from £0.16m in 2021, with the company confirming it had no debt.

“Revenues of over $3 million for Wressle’s Union Jack while in test production is very positive for the company, which remains in good financial health as the figures above illustrate” , said Executive Chairman David Bramhill.

“We believe that Wressle holds other significant advantages that will be demonstrated for the foreseeable future, and we look forward to reporting progress on site upgrades and achieving optimal production rates in time.” desired.

“In addition to Wressle, the company has three other cash-generating projects and, given current oil prices, remains cash flow positive covering corporate, administrative and operating costs of the project.”

At 13:47 GMT, Union Jack Oil shares were up 7.65% to 21.8p.