Union Jack Oil plc (AIM: UJO), a UK focused onshore hydrocarbon production, development and exploration company, is pleased to announce its audited results for the year ended 31 December 2019.
Operational Highlights
· 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 20 metres within the Kirkham Abbey formation
· Permission granted by the Planning Inspectorate for the development of the Wressle hydrocarbon discovery where first oil is anticipated during H2 2020
· Economic modelling at Biscathorpe indicates a financially robust project in the current
oil price environment
· Environment Agency approval received for the recommencement of well testing at West Newton A-2
Financial Highlights
· Fully funded for all current drilling and well-testing commitments
· Cash balance in excess of £5.5 million as at 1 May 2020
· Company remains debt-free
David Bramhill, Executive Chairman, commented:
“My confidence in respect of Union Jack’s future remains highly positive.
“The Company, during 2019 and to date, has advanced its key projects, and seen drilling and appraisal activity, supported by technical research input from our very competent technical team, resulting in an accretion in asset value and providing clarity on the next steps towards commerciality.
“I have no doubt that, even in these difficult times, given our attractive projects, we will achieve our goal of increasing production materially and becoming a significant mid-tier UK onshore producer in the medium term. In the meantime, I am certain that the news stream arising from the ongoing progress of our endeavours will vindicate our optimism in respect of our licence interests.
“Union Jack’s wider asset portfolio is well balanced with the relevant components of production, development, appraisal and discovery and we are fully funded for all our planned commitments going forward.
The future of Union Jack remains bright.”
