The West Newton – drilling presently underway – presents a significant potentially high impact opportunity for Union Jack.
Financial results for the twelve months ended 31 December 2018 come as the company awaits news from the potentially high impact West Newton appraisal well.
In October, the company acquired a 16.665% interest in West Newton via a farm-in deal and last month drilling operations began.
The West Newton A-2 appraisal well is a follow up to a previously drilled discovery well, which yielded a 189bn cubic feet gas equivalent resource in the Kirkham Abbey Shoal formation.
With the new well, Union Jack and its partners are targeting Kirkham Abbey and the Cadeby Reef exploration target, which has been estimated to have the potential for 79.1mln barrels of oil equivalent.
Notably, in the reporting period, the company increased production volumes by 250% and it increased its interests in key assets.
In terms of financials, the company highlighted that it is fully funded for all current drilling and testing requirements. It had a current cash balance in excess of £2.5mln at the end of May and is debt free.
UJO generated some £165,270 of revenue, and reported a pre-tax loss of £1.09mln for 2018.
“Union Jack’s strategy remains consistent with the objective of the Board to build a successful and sustainable UK-focused, onshore hydrocarbon production and development business,” Bramhill said in a statement.
“Marked progress was made in the year under review and in the post balance sheet period, in particular, our acquisition of an interest in PEDL183 containing the West Newton A-1 gas discovery, where the West Newton A-2 appraisal well is currently underway, and our increased interest to 27.5% in the Wressle-1 discovery.”
He added: “My confidence in respect of Union Jack’s future, since its incorporation, is at its optimum.”
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