REG - Union Jack Oil PLC - Unaudited Results for the 6 Months Ended 30 06 23

Union Jack OilAnnouncement

11/09/2023 07:00

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RNS Number : 9389L  Union Jack Oil PLC  11 September 2023

 

This announcement contains inside information for the purposes of Article 7 of
the Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic law
by virtue of the European Union (Withdrawal) Act 2018 ("MAR"), and is
disclosed in accordance with the Company's obligations under Article 17 of
MAR.

 

11 September 2023

 

UNION JACK OIL PLC

(AIM: UJO)

 

Unaudited Results for the Six Months Ended 30 June 2023

Union Jack Oil plc ("Union Jack" or the "Company"), a UK focused onshore
conventional oil and gas production, development and exploration company, is
pleased to announce its unaudited results for the Half Year ended 30 June
2023.

 

FINANCIAL AND OPERATIONAL HIGHLIGHTS

 

·    For the six-month period ended 30 June 2023:

o  Gross Profit of £1,608,973

o  Net Profit of £572,263

o  Revenue of £3,584,866

·    Cash balances, receivables and liquid investments stand in excess of
£9,250,000 as at

8 September 2023

·    Robust Balance Sheet, cash generative and debt free

·    All current projects funded for at least the next 12 months without
recourse to Capital Markets

·    Wressle is amongst the most productive conventional producing UK
onshore oilfields with nearly 500,000 barrels of high-quality oil having been
produced from the Ashover Grit formation alone

·    Wells planned for Keddington, Wressle and West Newton

·    Ongoing evaluation of new projects offering short-term cash-flow,
rapid payback and accretive value

 

David Bramhill, Executive Chairman, commented: "I am very pleased to be again,
able to present to the shareholders of Union Jack, a positive set of Half
Yearly results, containing several highlights of note, including a sustained
profit, a strong cash position and a robust Balance Sheet free of debt.

"These results reflect the determined effort by the Board of Directors,
advisers and technical consultants, all who share the same objective to grow
the Company with minimal dilution in the future.

"Union Jack remains in a strong financial position with a combination of
consistent cash flows, principally from our flagship asset at Wressle, plus
significant future upside potential from our balanced portfolio, giving Union
Jack the confidence to support a forward drilling and development programme on
our key projects that is being planned for the remainder of 2023 and beyond.

"Union Jack continues to be cash flow positive, covering all current G&A,
OPEX and contracted or planned CAPEX costs, including any drilling activities
for at least the next 12 months, without recourse to the Capital Markets.

"The future of Union Jack remains bright."

 

 

For further information please contact the following:

 

 Union Jack Oil plc              info@unionjackoil.com
 David Bramhill

 SP Angel Corporate Finance LLP  +44 (0)20 3470 0470
 Nominated Adviser and Broker
 Matthew Johnson
 Richard Hail
 Kasia Brzozowska
 Shore Capital                   +44 (0)20 7408 4090

 Joint Broker

 Toby Gibbs

 Iain Sexton

In accordance with the AIM Rules - Note for Mining and Oil and Gas Companies,
the information contained within this announcement has been reviewed and
signed off by Graham Bull, Non-Executive Director, who has over 47 years of
international oil and gas industry exploration experience. This announcement
contains certain forward-looking statements that are subject to the usual risk
factors and uncertainties associated with the oil and gas exploration and
production business. While the directors believe the expectation reflected
within this announcement to be reasonable in light of the information
available up to the time of approval of this announcement, the actual outcome
may be materially different owing to factors either beyond the Company's
control or otherwise within the Company's control, for example, owing to a
change of plan or strategy. Accordingly, no reliance may be placed on the
forward-looking statements.

 

Evaluation of hydrocarbon volumes has been assessed in accordance with 2018
Petroleum Resources Management System (PRMS) prepared by the Oil and Gas
Reserves Committee of the Society of Petroleum Engineers (SPE) and reviewed
and jointly sponsored by the World Petroleum Council (WPC), the American
Association of Petroleum Geologists (AAPG), the Society of Petroleum
Evaluation Engineers (SPEE), the Society of Exploration Geophysicists (SEG),
the Society of Petrophysicists and Well Log Analysts (SPWLA) and the European
Association of Geoscientists & Engineers (EAGE).

 

CHAIRMAN'S STATEMENT

I am pleased to present this Half Yearly Report for the six months ended 30
June 2023 to the shareholders of the Company.

 

OPERATIONAL AND FINANCIAL HIGHLIGHTS

·    Gross profit of £1,608,973 for the six-month period ended 30 June
2023

·    Net profit of £572,263 for the six-month period ended 30 June 2023

·    Revenue of £3,584,866 for the six-month period ended 30 June 2023

·    Cash balances, receivables and liquid investments stand in excess of
£9,250,000 as at

8 September 2023

·    Robust Balance Sheet, cash generative and debt free

·    Wressle is amongst the most productive conventional producing UK
onshore oilfields with nearly 500,000 barrels of high-quality oil having been
produced from the Ashover Grit formation alone

·    Wells planned for Keddington, Wressle and West Newton

·    Ongoing evaluation of new projects offering short-term cash-flow,
rapid payback and accretive to value

 

FINANCIAL AND OPERATIONAL OVERVIEW

Union Jack has made good progress during 2023 which can be seen in the Half
Yearly results ended 30 June 2023 (the "Period"), with a net profit posted of
£572,263 (H1 2022: £2,034,086).

A Gross Profit of £1,608,973 (H1 2022: £2,833,629) was posted for the
Period.

Revenues for the Period were £3,584,866 (H1 2022: £4,384,254).

The average oil price received for the Period was USD80 (H1 2022: USD104).

Foreign exchange movements had a negative effect on revenues with the firming
of the GBP versus the USD conversion rate.

Contributions from our flagship project Wressle, supplemented by revenues from
the Keddington oilfield, have enabled the Company to sustain and support an
extremely robust Balance Sheet, with cash, near term receivables and
investments currently standing in-excess of £9,250,000 and to remain debt
free. The majority of long-term cash is held in a competitive, interest
bearing account, without risk to funds.

The Company is fully funded for all G&A, OPEX and planned CAPEX costs,
including any budgeted drilling activities for at least the next 12 months
without recourse to the Capital Markets.

Since the commencement of the dividend and share buy-back programme during
September 2022 to date, the Company has returned over £2,995,000 to
shareholders. The dividend policy remains as previously stated and the
intention is to continue these payments, based on the proportion of free cash
available, subject to our project obligations being fulfilled.

Union Jack's selective investment portfolio during the period has generated
significant returns, well over 100% of our original investment from the sale
of the Claymore Area Royalty Agreement in May 2023 and a return of 194% on our
investment in Egdon Resources plc, as a result of the recent agreed take over
by Petrichor Partners LLP.

Operationally, good progress has been made at Wressle where the Joint Venture
partners have agreed a budget and drilling programme, targeting the Penistone
Flags formation for 2024. Pre-application planning advice has been sought from
North Lincolnshire Council for review and a decision has been made on a sales
route for the gas produced. A planning application is in preparation along
with the associated supporting studies and reports.

Agreement has been reached between the partners to drill a side-track well at
the earliest opportunity at Keddington, for which planning consent is already
in place. A final well trajectory has been decided upon and procurement of the
rig, materials and services is progressing. The well, if successful, will add
considerably to production.

West Newton, located in an area that provides excellent regional
infrastructure and substantial technically recoverable resources, awaits the
drilling of a 1,500 metre horizontal well, where planning has been approved,
whilst corporate activity regarding our Joint Venture partners continues with
third party discussions regarding future drilling and possible development
partnerships.

Additional information on our leading projects at Wressle, West Newton,
Keddington and other licence interests can be found later within this
statement.

Union Jack remains committed to promoting and investing in the conventional UK
onshore oil sector. The opinion of the Board is that several "rich pickings"
remain which could be transformed into substantive discoveries over the coming
years. However, the rate of progress can only be described as painfully slow
due to the wider UK regulatory process that neither the Company nor its Joint
Venture partners have the ability to influence. Onshore UK will remain the
prime driver for Union Jack and we are confident that our flagship project
Wressle, will continue to deliver as the future development plans indicate.

Union Jack's very able technical team continue to screen and investigate the
impressive upside that we believe is contained within our existing projects
and we will continue to invest and agree to capital expenditure budgets to
advance them. However, over the past year we have considered the potential UK
political environment and the possible impacts on Union Jack's business
development over the coming years.

To mitigate future risk, the Board believes it is compelled strategically to
seek growth opportunities further afield in politically safe regimes and with
sympathetic views toward the oil industry, without compromising the world's
environmental objectives and the aim of a Net Zero target by 2050.

Over the past six months we have appointed a team of specialists who are able
to provide a bespoke service in generating potential value adding projects for
review and consideration. We are seeking projects that will be self-funding in
the short term, without placing undue strain on our strong Balance Sheet,
allowing us to remain focused on the onshore UK as our core area of
investment. We look forward to updating the market as this search progresses.

 

PEDL180 AND PEDL182 WRESSLE OILFIELD DEVELOPMENT (40%)

Wressle is located in Lincolnshire on the Western Margin of the Humber Basin.

The Wressle-1 well discovery was defined on proprietary 3-D seismic data. The
structure is on trend with the producing Crosby Warren oilfield and the
Broughton B-1 oil discovery, both to the immediate northwest, and the Brigg-1
discovery to the southeast. All these wells contain oil in various different
sandstone reservoirs within the Upper Carboniferous succession.

Since the resumption of production during August 2021, following the
successful proppant-squeeze and coiled tubing operation, Wressle-1 has
produced nearly 500,000 barrels of oil from the Ashover Grit formation.

Since late June 2023, limited amounts of water have been observed with water
cut averaging approximately 3.72% of total field production. This figure has
remained constant throughout July and August 2023.

The Operator has planned for this event and a simple clean water disposal plan
is in place which is an inexpensive exercise for the Joint Venture partners.

The start of modest water production is significantly later than originally
anticipated, providing further evidence that the expected recoverable volumes
from the Ashover Grit are likely to be at the higher estimates detailed in the
independent Competent Person's Report ("CPR") prepared by ERCE during 2016.
The 2016 CPR forecast gross volumes from the Ashover Grit of 2P 0.54 MMstb and
3P 1.12 MMstb.

The planned maintenance shutdown scheduled for early 2024, where artificial
lift equipment capable of pumping in excess of 1,000 barrels of fluid per day
was to be installed along with other site upgrades, has been brought forward
and the fitting of a downhole jet pump is currently being completed, along
with the siting of other surface equipment. This exercise is a natural
sequence in the life-cycle of an oil well and offers a reliable method of
ensuring the continued operation and the optimisation of its future production
performance.

Environmental monitoring throughout the Wressle operation has shown no
measurable impact on surface or groundwater quality, no related seismicity and
that operational noise levels have been contained within permitted ranges.

Evaluations are continuing in order to deliver a full Field Development Plan
that will maximise hydrocarbon recoveries from the Ashover Grit, Wingfield
Flags, Penistone Flags and other associated prospects.

 

WEST NEWTON APPRAISAL PEDL183 (16.665%)

PEDL183 is located onshore UK, north of the River Humber, encompassing the
town of Beverley, East Yorkshire. The licence area is within the western
sector of the Southern Zechstein Basin.

Union Jack entered into a farm-in during 2018 with Rathlin Energy (UK) Limited
("Rathlin") the Operator, and since that time the West Newton A-2 ("WNA-2")
and West Newton B -1Z ("WNB-1Z") drilling programmes have yielded substantial
hydrocarbon discoveries within the Kirkham Abbey formation.

Throughout 2022, data collected during drilling operations and well testing,
which included core, oil and gas samples, wireline log and well test records
were analysed by independent laboratories CoreLab, Applied Petroleum
Technology ("APT") and RPS Group Limited ("RPS"). The results of these
analyses, in conjunction with internal evaluations, have been invaluable in
informing the upcoming programme of work and future drilling plans.

The laboratory reports confirm that the hydrocarbon-bearing Kirkham Abbey
reservoir is extremely sensitive to aqueous fluids and that previous drilling
of the West Newton wells with water-based mud had created near well-bore
damage through the creation of very fine rock fragments, affecting the natural
porosity and permeability of the formation which had a detrimental effect on
its ability to flow. Further analyses have determined that the use of dilute
water-based acids during well testing would have also affected the flow
characteristics of the Kirkham Abbey reservoir.

These tests indicate that by drilling the Kirkham Abbey reservoir with an
oil-based drilling fluid, damage to the oil and gas reservoir should be
minimised.

The Operator, Rathlin, has made applications to the Environment Agency ("EA")
for use of oil-based drilling fluids within the hydrocarbon bearing Permian
section for both the West Newton A and B sites.

Analyses by APT of numerous oil and gas samples recovered from the West Newton
wells during testing, along with evaluation of mud gases measured during
drilling utilising a proprietary software package, indicates that the Kirkham
Abbey reservoir is predominantly gas (primarily methane 90% plus ethane 5%)
with associated light condensate.

RPS has modelled wells extending up to 1,500 metres horizontally through the
Kirkham Abbey reservoir. These wells have a much greater likelihood of
encountering significant sections of the naturally fractured reservoir,
enhancing its productive capability.

In preparation for a decision on the potential development of the West Newton
discoveries, the Operator submitted revised planning applications for the
development of West Newton to the ERYC. This was approved by the ERYC Planning
Committee by a vote of ten to one during March 2022.

A revised CPR was compiled by RPS during 2022, evaluating the resources of
PEDL183 as of 30 June 2022, ("Effective Date").

The results of the 2022 CPR were very encouraging, highlighting:

•    Kirkham Abbey Best Case Gross Unrisked Contingent Technically
Recoverable Sales Gas is estimated to be 197.6 billion cubic feet ("bcf")

•    Geological Chance of Success of Kirkham Abbey horizontal well
estimated to be 85.5%

•    Gross NPV10 risked value of Kirkham Abbey Contingent Gas Resource as
at Effective Date of USD396.1 million post tax

•    Substantial additional Prospective Resource figures for Ellerby,
Spring Hill and Withernsea prospects

In the preparation of the 2022 CPR, RPS adopted the Petroleum Resource
Management System ("PRMS") standard.

 

WEST NEWTON GROSS UNRISKED TECHNICALLY RECOVERABLE SALES

 Category  Gross Technically Recoverable
           Gas              Liquids

(bcf)
(mbbl)
 1C        99.7             299.4
 2C        197.6            593.0
 3C        393.0            1,178.9

Note: Net data for Union Jack can be calculated by applying its 16.665%
economic interest to the above gross data.

 

WEST NEWTON GEOLOGICAL CHANCE OF SUCCESS

 Asset        Source Rock  Charge  Migration  Reservoir  Trap  Seal  Geological COS
 West Newton  1.00         1.00    1.00       0.90       0.95  1.00  0.855

 

A future West Newton development will benefit from being located in an area
that provides access to substantial regional infrastructure and could deliver
significant volumes of onshore low-carbon sales gas into the UK's energy
market.

Domestically produced natural gas is, and will remain, a much-needed part of
the energy mix as the UK seeks to reduce its reliance on imported products.

Union Jack looks forward to the drilling of a 1,500 metre horizontal well at
the earliest opportunity and unlocking the significant potential of the
Greater West Newton project.

 

PEDL253 BISCATHORPE (45%)

PEDL 253 is situated within the proven hydrocarbon fairway of the South Humber
Basin and is on-trend with the Keddington oilfield and the Saltfleetby
gasfield.

While drilling the Biscathorpe-2 well, there were hydrocarbon shows, elevated
gas readings and sample fluorescence observed over the entire interval from
the top of the Dinantian to the Total Depth of the well, with 68 metres being
interpreted as being oil-bearing.

Independent consultants APT also conducted analyses, confirming a hydrocarbon
column of 33-34 API gravity oil, comparable with the oil produced at the
nearby Keddington oilfield.

Further evaluation of the results of the Biscathorpe-2 well, together with the
reprocessing of 264 square kilometres of 3D seismic, indicate a material and
potentially commercially viable hydrocarbon resource remaining to be
appraised.

Subject to a favourable planning appeal decision a side-track well is planned,
targeting the Dinantian Carbonate where the Operator has assessed, in
accordance with the PRMS Standard, a gross Mean Prospective Resource of 2.55
MMbbl. The overlying Basal Westphalian Sandstone has the potential to add
gross Mean Prospective Resources of 3.95 MMbbl. Economic modelling
demonstrates that the Westphalian target is economically robust, especially in
the current oil price environment. Commercial screening indicates break-even
full cycle economics to be USD18.07 per barrel.

During November 2021, a planning application for a side-track drilling
operation, associated testing and long-term production was refused by the
Lincolnshire County Council Planning Committee, despite being recommended for
approval by the planning officers.

The Joint Venture partners are awaiting a decision from the Planning
Inspectorate, where an appeal was heard in October 2022.

Union Jack's technical team believe that Biscathorpe remains one of the
largest unappraised conventional onshore discoveries within the UK.

 

PEDL005(R) KEDDINGTON (55%)

The producing Keddington oilfield is located along the highly prospective East
Barkwith Ridge, an east-west structural high on the southern margin of the
Humber Basin.

A subsurface review conducted by the Operator has highlighted a viable target
to the east of the field, with up to 180,000 barrels of incremental
production.

Modelling indicates that infill drilling is forecast to improve recovery from
the Keddington field by between 113,000 to 183,000 barrels of oil. With
planning permission already in place, Keddington presents an excellent
opportunity to increase oil production relatively inexpensively.

The Keddington 3-D seismic has been re-processed and a well trajectory agreed
between the Joint Venture partners. The procurement of the rig, materials and
services is progressing and the drilling of a side-track well is expected to
take place at the earliest opportunity.

 

PEDL241 NORTH KELSEY (50%)

North Kelsey is a conventional oil exploration prospect, on trend with and
analogous to the Wressle oilfield which lies approximately 15 kilometres to
the northwest. The prospect has been mapped from 3-D seismic data and has the
potential for oil in four stacked Upper Carboniferous reservoir targets.

The Operator estimates that gross Prospective Resources range from 4.66 to
8.47 MMbo.

During August 2022, the Operator submitted an appeal on behalf of the Joint
Venture, against the refusal of an extension of time to the existing planning
permission by Lincolnshire County Council for the drilling and testing of a
conventional exploration well at the North Kelsey site.

Subsequent to this event, Union Jack was informed by the Operator that it has
withdrawn the planning appeal outlined above.

A new application will be submitted at a later date following consultation
with the local community.

 

NET ZERO CARBON POLICY

The UK is committed by law to reach Net Zero carbon emissions by 2050. Union
Jack pursues a strategy whereby it is not the Operator of any of its projects.
Therefore, the Company will only work with Operators who have a firm
commitment to safety, environmental and social responsibility in all aspects
of their operations.

Regardless of the fact that the Company has chosen not to be an Operator, we
are subject to the same scrutiny as any other hydrocarbon producer.

We remain pro-active in the quest for Net Zero and Union Jack's focus is to
minimise emissions and the carbon footprint generated by its hydrocarbon
interests in the most efficient means possible, whilst continuing to
contribute positively to the growing demand for energy and hydrocarbon
products in the supply chain.

As the demand for energy increases as the global economy recovers,
hydrocarbons will continue to play an important role in ensuring the energy
security of the UK.

Union Jack's development interests are located close to areas with a high
demand for energy and as a consequence management believes that locally
produced hydrocarbons provide the benefit of displacing, to some extent,
imported hydrocarbons.

 

OUTLOOK

I am very pleased again to be able to present to the shareholders of Union
Jack a positive set of Half Yearly results, containing several highlights of
note, including a sustained profit, a strong cash position and a robust
Balance Sheet free of debt, reflecting the determined effort and perseverance
by the Board of Directors, advisers and valued technical consultants with an
unwavering objective to grow the Company going forward with minimal dilution
in the future.

Union Jack remains in a strong financial position with a combination of
consistent cash flows, principally from our flagship asset at Wressle, plus
significant future upside potential from our balanced project portfolio.

Union Jack continues to be cash flow positive covering all G&A, OPEX and
contracted or planned CAPEX costs, including any drilling activities for at
least the next 12 months without recourse to Capital Markets.

I would like to take this opportunity to thank our shareholders for their
continued support and I look forward to the remainder of 2023 and beyond,
reporting on a number of fronts, in particular on our potential new ventures.

The future of Union Jack remains bright.

 

David Bramhill

Executive Chairman

11 September 2023

Unaudited income Statement

FOR THE SIX MONTHS ENDED 30 JUNE 2023

                                               Notes  Six Months               Six Months               Year

ended
ended
ended

30 June 2023 Unaudited
30 June 2022 Unaudited
31 December 2022

£
£
Audited

£
 Revenue                                              3,584,866                4,384,254                8,507,050
 Cost of sales - operating costs
(527,425) (1,297,439)
(514,824) (1,035,801)
(1,143,967)
 Cost of Sales - depreciation
(151,029)
-
(2,125,425)

Cost of sales - Net Profit Interest payment
(137,179)
 Gross profit                                         1,608,973                2,833,629                5,100,479
 Administrative expenses                               (925,077)               (789,007)                (1,665,174)

Impairment
(30,201)
-
(475,556)
 Total administrative expenses                        (955,278)                (789,007)                (2,140,730)
 Operating profit                                     653,695 42,231           2,044,622                2,959,749
 Finance income
70,000
52,222
86,586 42,444

Other income
42,023
 Profit before taxation                               765,926                  2,138,867                3,088,779
 Taxation-

(193,663)
(104,781)
517,845
                                               3
 Profit for the period / year                         572,263                  2,034,086                3,606,624
 Attributable to:                                                              2,034,086

Equity shareholders of the Company

3,606,624
                                                      572,263
 Earnings per share                                   0.52                     -                        -
 Basic (pence)

0.51

Diluted (pence)                              2                               1.80                     3.20

1.78
3.16
                                               2

 

 

Unaudited Statement of Comprehensive Income

FOR THE SIX MONTHS ENDED 30 JUNE 2023

                                         Six Months               Six Months               Year

ended
ended
ended

30 June 2023 Unaudited
30 June 2022 Unaudited
31 December 2022

£
£
Audited

£
 Profit for the period / year            572,263                  2,034,086                3,606,624
 Items which will not be reclassified    267,727                  371,230                  170,500

subsequently to profit

Profit on investment revaluation
 Total comprehensive profit

for the period / year

                                         839,990                  2,405,316                3,777,124

 

 

Unaudited Balance Sheet

AS AT 30 JUNE 2023

                                        Notes  As at                    As at                    As at

30 June 2023 Unaudited
30 June 2022 Unaudited
31 December 2022

£
£
Audited

£
 Assets                                        9,312,335                8,866,419                9,134,006

Non-current assets
4,688,927
6,779,563
5,666,212
 Exploration and evaluation assets
937,783 1,849,928
662,748
552,043

Property, plant and equipment
-                       1,805,025
 Investments

Deferred tax asset
                                               16,788,973               16,308,730               17,157,286

 Current assets                                27,622                   19,246                   28,038
 Inventory                                     2,674,289
2,124,110
2,020,913
 Trade and other receivables                   6,280,609
6,503,962
7,155,100

Cash and cash equivalents
                                               8,982,520                8,647,318                9,204,051
 Total assets                                  25,771,493               24,956,048               26,361,337

 Liabilities
 Current liabilities

 Trade and other payables                      1,104,700                383,561                  778,290
 Non-current liabilities
 Provisions

 Deferred tax liability                        1,717,206                1,867,061                1,700,069

638,219
-                       877,747
 Total liabilities                             3,460,125                2,250,622                3,356,106

 Net assets                                    22,311,368               22,705,426               23,005,231
 Capital and reserves attributable      4      7,514,576                7,507,076                7,514,576

to the Company's equity shareholders

21,528,077
-

                                             -

 Share capital
                        733,350                  712,634

Share premium                                712,634

Share-based payment reserve
                        -                        (214,227)

Treasury reserve                             (1,748,079)
(7,063,077)
14,992,248

Accumulated profit / (deficit)
15,832,237
 Total equity                                  22,311,368               22,705,426               23,005,231

 

 

Unaudited Statement of Cash Flows

FOR THE SIX MONTHS ENDED 30 JUNE 2023

                                             Six months               Six months                   Year

ended
ended
ended

30 June 2023 Unaudited
30 June 2022 Unaudited
31 December 2022

£
£
Audited

£

 Cash outflow from operating activities      2,178,691                1,006,040                    5,811,734
 Cash flow from investing activities         (304,596)                (330,375)                    (712,935)
 Purchase of intangible assets
(366,224)
(197,599)                   (2,852,254)

Purchase of property, plant and equipment
227,272
-                           -

Disposal of assets
(1,000,000)             (1,000,000) - 1,000,000
(1,000,000)

Fixed term deposit
-
-
(1,000,000)

Loan advanced
-
-
2,000,000

Loan capital returned
(118,013)               48,355
(100,000)

Purchase of investments
-
6,772 105,996

Sale of investments
42,231

Interest received
 Net cash used in investing activities       (1,519,330)              (479,619)                    (3,552,421)

 Cash flow from financing activities         -                        -                            33,000
 Proceeds on issue of new shares
-                       - -

Dividends paid
(1,533,852)                                          (900,527)

Treasury shares                                                                                  (214,227)
 Net cash generated from                     (1,533,852)              -                            (1,081,754)

financing activities
 Net (decrease) / increase in

cash and cash equivalents

                                             (874,491)                526,421                      1,177,559
 Cash and cash equivalents                   7,155,100                5,977,541                    5,977,541

at beginning of period / year
 Cash and cash equivalents                   6,280,609                6,503,962                    7,155,100

at end of period / year

Notes to the Unaudited Financial Information

FOR THE SIX MONTHS ENDED 30 JUNE 2023

 

1              Accounting Policies

 

Basis of Preparation

These financial statements are for the six-month period ended 30 June 2023.

The information for the year ended 31 December 2022 does not constitute
statutory financial statements as defined in section 434 of the Companies Act
2006.

A copy of the statutory financial statements for that period has been
delivered to the Registrar of Companies. The Auditor's Report was not
qualified, did not include a reference to any matters to which the Auditor
drew attention by way of emphasis without qualifying the report and did not
contain statements under section 498(2) or (3) of the Companies Act 2006.

The interim financial statements for the six months ended 30 June 2023 are
unaudited.

The interim financial information in this report has been prepared in
accordance with International Financial Reporting Standards ("IFRS") applied
in accordance with the provisions of the Companies Act 2006.

The financial statements have been prepared under the historical cost
convention. The principal accounting policies have been consistently applied
to all periods presented.

Significant Accounting Policies

The accounting policies and methods of computation followed in the interim
financial statements are consistent with those as published in the Company's
Annual Report and Financial Statements for the year ended

31 December 2022.

The Annual Report and Financial Statements are available from the Company
Secretary at the Company's registered office, 6 Charlotte Street, Bath BA1 2NE
or on the Company's website www.unionjackoil.com (http://www.unionjackoil.com)
.

Going Concern

The directors have, at the time of approving the interim financial statements,
a reasonable expectation that the Company has adequate resources to continue
in operational existence for the foreseeable future and continue to adopt the
going concern basis of accounting.

2              Profit per Share Attributable to the Equity
Shareholders of the Company

 

Basic profit per share is calculated by dividing the earnings attributable to
ordinary shareholders by the weighted average number of ordinary shares
outstanding during the period.

In the periods prior to 30 June 2022, the share options in issue were excluded
as their inclusion would have been anti-dilutive. Where the calculated average
share price was lower than the exercise price of share options in issue, these
potential ordinary shares have not been included for the purposes of
calculating the diluted profit per share.

 Basic profit per share                       Six months     Six months     Year

ended
ended
ended

30 June 2023
30 June 2022
31 December 2022

pence
pence
pence
 Profit per share from continuing operations

- Basic

- Diluted                                   0.52           1.80           3.20

0.51
1.78
3.16

 

 The profit and weighted average number of ordinary shares used in the
 calculation of basic earnings per share are as follows:
                                          Six months     Six months     Year

ended
ended
ended

30 June 2023
30 June 2022
31 December 2022

£
£
£
 Profit used in the calculation of total  572,263        2,034,086      3,606,624

basic and diluted earnings per share

 Number of Shares                         Six months     Six months     Year

ended
ended
ended

30 June 2023
30 June 2022
31 December 2022
 Weighted average number of ordinary

shares for the purposes of basic and

diluted earnings per share

 - Basic

- Diluted

                                          110,000,979    112,715,896    112,706,307

                                          111,350,979    114,215,896    114,132,334

 

Treasury Shares

As at 30 June 2023, the Company held 6,300,000 of its ordinary shares in
treasury. These shares are not included in the earnings per share calculation.
There are no current plans to cancel these shares.

 

 

3              Taxation

Consistent with the year-end treatment, current and deferred tax assets and
liabilities have been calculated at tax rates which were expected to apply to
their respective period of realisation at the period end. The Energy Profits
Levy for the year 2023 has been increased to 35% and the CAPEX relief
decreased to 129%. OPEX relief remains at 100%.

 

4              Share Capital

At 30 June 2023, there were 112,865,896 ordinary shares of a nominal value of
5 pence in issue.

At 30 June 2023, there were 831,680,400 deferred shares of 0.225 pence nominal
value in issue.

5              Events after the Balance Sheet Date

 

On 28 July 2023, a dividend of 0.3 pence per ordinary share of Union Jack was
paid to shareholders. Treasury Shares held by the Company did not qualify for
this dividend.

 

 

6              Related Party Transactions

Charnia Resources (UK), an unincorporated entity owned by Graham Bull,
non-executive director, received from the Company the sum of £60,187 during
the period under review in respect of consulting fees. £12,011 was
outstanding at the end of the period.

Jayne Bramhill, spouse of David Bramhill, received from the Company the sum of
£6,000 during the period under review in respect of IT maintenance and
administration costs.

On 19 June 2023, Joseph O'Farrell, Executive Director purchased a total of
133,400 ordinary shares of 5 pence each in Union Jack, at a weighted average
price of 31.25 pence each.

 

7              Copies of the Half Yearly Report

A copy of the Half Yearly Report is now available on the Company's website
www.unionjackoil.com.

 

 

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