Union Jack Oil the company has seen significant financial transformations with positive indicators and substantial revenues update, including Oil revenues increased by over 1,000% during 2021
Share Talk invited David Bramhill, Executive Chairman, of Union Jack Oil (AIM: UJO) into the London studio to updated holders and explained what the future holds for the company.
Union Jack reported in its final results that oil sales of £1.894m for FY21, an increase from £0.158m for FY20, had had a “dramatic effect” on the company’s income statement.
This has led to the company reporting its first gross profit. It also reported that the company’s FY21 revenues have already been comfortably exceeded by net revenues of £2.877.
“The future of Union Jack remains bright.”
The Company stated that significant revenue from Wressle development had benefited its financial health and significantly strengthened its balance sheet.
As of 31 December 2021, cash and cash equivalents were at £5.977m, as compared to FY20 £7.269m. It is still debt-free and its cash balance as of 9 May 2022 was £7.545m. Union Jack saw its losses drop to £0.853m, from £1.865m the previous year.
Union Jack claims that its financial situation means it can pay for all planned and operational CAPEX costs. This includes any drilling activities budgeted for a minimum of 12 months.
SP Angel, a broker and nominated advisor to the stock, has given a strong buy rating. “In our opinion, production and cash flow from the Wressle fields have significantly transformed the company in the past 12 months. Investors can look forward to a busy period in planned drilling and development activity over the next 12 months, which has the potential for unlocking significant valuation upside.
Union Jack, which highlighted to shareholders its belief that hydrocarbons will play an important role in the future energy security of the UK as the world’s demand for energy rises post-COVID-19, and the economy recovers, believe that hydrocarbons will also continue to play an important role.
The company solicitors progressing legal work on Capital Reduction to enable the Company to execute a share-buy-back programme or dividend payment.
Not forgetting the appeal against planning refusal at Biscathorpe submitted to Planning Inspectorate and has majority interests in West Newton, Keddington, Fiskerton Oilfield, and North Kelsey. Plus a 2.5% royalty interest in the North Sea Claymore, Piper and Scapa oilfields
The future certainly does look bright for this on-shore UK Small-Cap Oil and Gas producer.
