REG - Union Jack Oil PLC - Wressle Update and Notice of Results and Dividend

Union Jack OilAnnouncement

17/04/2024 07:01

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RNS Number : 8596K  Union Jack Oil PLC  17 April 2024

17 April 2024

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.

 

Union Jack Oil plc

("Union Jack" or the "Company")

Wressle Update

Notice of Results and Dividend

 

Union Jack Oil plc (AIM: UJO), a UK and USA focused onshore hydrocarbon
production, development and exploration company, is pleased to announce an
update in respect of the Wressle hydrocarbon development ("Wressle") 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.

·    In excess of US$19,000,000 generated net to Union Jack since the
recommencement of production at Wressle in August 2021 and remains materially
cash generative

·    Production for Q1 2024 averaged circa 530 barrels of oil per day
(gross) with an average water cut of 24.3%, which is easily disposed of at a
nearby facility at negligible cost

·    Current production comfortably exceeds ERC Equipoise's forecasts, as
indicated in its December 2023 Competent Person's Report

·    Wressle continues to be the second most productive onshore UK
oilfield

·    Planning permission has been submitted to the North Lincolnshire
Council in respect of the drilling of two additional back-to-back development
wells and gas export facilities to the national grid to allow for the
monetisation of the significant gas reserves associated with the Penistone
Flags formation

·    The new drilling and development campaign will commence at the
earliest opportunity, subject to regulatory approval

·    In addition to the development and drilling plans at Wressle, the
Company is also optimistic about the potential positive implications of a new
seismic interpretation and mapping exercise across the Wressle field that has
highlighted a possible significant increase in resources from the Ashover Grit
formation

 

Notice of Results and Dividend

The Company confirms that it will announce its audited results for the year
ended 31 December 2023 on 20 May 2024. The Board also expects to announce the
payment of a dividend to qualifying shareholders, details of which will be
notified in May 2024.

 

David Bramhill, Executive Chairman of Union Jack, commented: "Wressle
continues to deliver robust revenues, bolstering our already strong Balance
Sheet.

"The next stage of Wressle's development will underline the management's
approach to unlocking value and further optimise production and economic
returns for shareholders from our flagship asset.

"Cash flows from Wressle remain the fuel for growth going forward, providing
the financial resources necessary to progress the development of assets both
in the UK and USA.

"The Company is in excellent financial health and well poised to take
advantage of the opportunities before it.

"Given our sound financial position and the additional cash flow from Union
Jack's expanding United States Mineral royalty portfolio, the Board will be
announcing the payment of a dividend to qualifying shareholders, details of
which will be notified in May 2024."

 

 

For further information, please contact:

 

Union Jack Oil
plc
info@unionjackoil.com (mailto:info@unionjackoil.com)

David Bramhill

 

SP Angel Corporate Finance
LLP
+44 (0)20 3470 0470

Nominated Adviser and Joint Broker

Matthew Johnson

Richard Hail

Caroline Rowe

Kasia Brzozowska

 

Shore
Capital
+44 (0)20 7408 4090

Joint Broker

Toby Gibbs

Harry Davies-Ball

 

Gneiss Energy Limited
 
+ 44 (0)20 3983 9263

Financial Adviser

Jon Fitzpatrick

Paul Weidman

 

BlytheRay
+44 (0)20 7138 3204

Financial PR

Tim Blythe

Megan Ray

 

Harbour Access
 
+1 (475) 477 9402

USA Investor Relations

Jonathan Paterson

Tommy Zima

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