Union Jack Oil today announced its audited results for the year ended 31 December 2020.

Operational Highlights

• Successful drilling of the West Newton B-1Z conventional appraisal well where initial petrophysical evaluation has demonstrated a gross hydrocarbon saturated interval of at least 118 metres within the Kirkham Abbey formation
• West Newton B-1Z and A-2 well tests are imminent
• Following the successful re-perforation of the Ashover Grit formation at Wressle, oil is free flowing and the Wressle-1 well has been placed on continuous production test and is awaiting a proppant squeeze
• 12.5% interest acquired in PEDLs 180 and 182, containing the Wressle discovery, bringing Union Jack’s holding to 40%
• Purchase of a 35% interest inthe producing Keddington Oilfield PEDL005(R) acquired,bringing Union Jack’s interest to 55%
• Completion of the purchase of a further 15% interest in PEDL253 containing the Biscathorpe Prospect bringing Union Jack’s interest to 45% during January 2021
• Purchase of a 2.5% royalty interest in the North Sea Claymore Piper and Scapa oilfields

Financial Highlights

• Increased revenueof £158,004 (2019: £136,959)
• Operating loss of £1,883,893(2019: £1,705,198),primarily as a result of higher administrative costs due to additional technical work in respectof West Newton, Wressle, Biscathorpe and Keddington
• Cash balance in excess of £5.7 million at 1 May 2021, not including loan receivables and royalty accruals of over £1 million due during 2021 and 2022
• Net assets increased by 35% to over £18 million from £13 million in 2019
• Fully funded for all current development and well testing commitments
• Company remains debt free

David Bramhill, Executive Chairman, commented:
“My confidence in respect of Union Jack’s future remains highly positive.

“The Company, during 2020 and to date, has advanced its key projects, executed drilling, development and appraisal activity, supported by technical evaluation and analysis provided by our own highly competent technical team, that has resulted in an accretion in the Company’s asset value and provided greater clarity on the next steps towards commerciality.

“I have no doubt even in these unprecedented times, that given our attractive projects, we will achieve our goal of increasing production materially and becoming a significant, principally onshore mid-tier UK producer in due course. In the meantime, I am confident that the news stream arising from the ongoing progress at our ventures, will vindicate our optimism.

“Union Jack’s wider asset portfolio continues to be well balanced with the relevant components of production, development, appraisal and discovery.

“The Company remains in sound financial health, with a robust balance sheet, continues to be debt free, with ample cash reserves to fund its well testing and planned development commitments, offering shareholders ongoing and significant scope for growth.

“The future of Union Jack remains bright.”

KeyFacts Energy: Union Jack Oil UK country profile