Union Jack Oil PLC reveals “tangible confirmation of progress” in latest update
The highlight of the statement was the performance of the Wressle onshore well, which is performing well ahead of expectations in spite of flowing under a highly restricted choke
The group updated investors on progress at the Wressle field in Lincolnshire, in which the group has a 40% stake.
The well there continued to comfortably exceed expectations at an average 666 barrels of crude a day following the upgrade of the gas incineration system.
The addition of 368,000 cubic feet of gas over the past seven days brings the total to 727 barrels of oil equivalent per day.
“Wressle is still in the infancy of its development and despite restricted flow and continuing site upgrades, net revenues to Union Jack have been material since mid-August 2021,” said Union Jack chairman David Bramhill.
At Keddington, also in Lincolnshire, Union Jack said it has found a method of increasing production after an independent detailed sub-surface review was carried out.
Its other assets in the county are North Kelsey, which could be drilled next year (subject to planning), and Biscathorpe, where the licence operator is likely to appeal a decision to reject an application for a side-track operation.
Financially, Union Jack appears more than adequately resourced with just over £6mln in the bank as at December 16. It expects revenues by the year-end to be £1.76mln.
“This timely operational and financial update provides tangible confirmation of the progress being made by Union Jack,” said Bramhill.
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2021-12-16 02:17:00
