Union Jack Oil has announced that material landmark net revenues have been achieved from the Wressle hydrocarbon development, located within licences PEDL180 and PEDL182 in North Lincolnshire, on the western margin of the Humber Basin.

Union Jack holds a 40% economic interest in this development.

Highlights

• US$2,000,000 revenues generated to Union Jack at Wressle since re-commencement of production on 19 August 2021
• Well is producing under natural flow
• Production remains constrained on a restricted choke
• Zero water cut
• Staged site upgrades ongoing
• For the first time Union Jack is now cash flow positive covering all corporate, administrative and project operating costs
• As at 11 January 2022, cash balances of £6,270,045 and receivables of £1,568,521
• Debt free

Executive Chairman of Union Jack, David Bramhill, commented:
"The revenues of in-excess of US$2,000,000 to Union Jack, whilst under test production, are highly positive for the Company which remains in prime financial health as the above figures illustrate.

"We believe that Wressle holds considerable further upside which will be demonstrated over the foreseeable future and we look forward to reporting on progress in due course.

"As well as Wressle, the Company has three other cash generating projects and under current oil prices, for the first time is now cashflow positive and covering all of its outgoings, including corporate, administrative and project operating costs."

Wressle

Union Jack holds an 15% interest in PEDL180 and PEDL182 located in Lincolnshire, on the Western margin of the Humber Basin and is on trend with the producing Crosby Warren oil field and the Brigg-1 oil discovery, situated to the immediate northwest and southeast of the licence respectively.

In July 2014 the Wressle-1 conventional exploration well was spudded. The Wressle-1 Prospect was defined on proprietary 3D seismic data acquired by Egdon in 2012, and the well was drilled as a deviated well to a total depth (TD) of 2,240 metres and was designed to intersect a number of prospective Upper Carboniferous age sandstone reservoirs in a structurally favourable position near the crest of the Wressle structure. Pre-drill gross mean Prospective Resources at Wressle as calculated by Egdon were estimated to be 2.1 million barrels of oil.

KeyFacts Energy: Union Jack Oil UK country profile