Union Jack Oil, a UK and USA focused onshore hydrocarbon production, development, exploration and investment company, has announced its audited results for the year ended 31 December 2023.
Operational Highlights
- Flagship Wressle project continues to deliver following a workover, installation of a down hole pump and other significant site upgrades
- Wressle Competent Person's Report upgrades Reserves by 263%
- Application submitted for the drilling of two back-to-back Wressle development wells and the Penistone Flags gas monetisation
- Positive Biscathorpe planning appeal decision
- Sale of 2.5% interest in offshore North Sea Claymore Area Royalty
- Commencement of acquisition of United States Mineral Royalties and drilling activity in Oklahoma
- Planned drilling and development during 2024 to encompass both sides of the Atlantic
- Post Balance Sheet date, the Andrews 1-17 Well, in Oklahoma, USA, has been declared a commercial discovery
Financial Highlights
- Gross profit of £3,298,844 (2022: £5,100,479)
- Net profit of £859,089 (2022: £3,606,624)
- Basic earnings per share 0.79 pence (2022: 3.20 pence)
- Oil revenues £5,065,679 (2022: £8,507,050)
- The Company continues to be debt free
- Post Balance Sheet date, a dividend of 0.25 pence per ordinary share was declared, payable on 26 July 2024
David Bramhill, Executive Chairman, commented:
'The Board's confidence has once again been supported by the Company's solid 2023 financial results, confirming its resilience, both financially and operationally.
'In the UK, Union Jack will remain focused on the development of its flagship project, Wressle, where the Operator and joint venture partners have ambitious near-term appraisal and development programmes planned. The Board is of the opinion that, within the Wressle development, there remains significant material upside which will support the Company with revenues for at least another decade.
'I also look forward to progress at West Newton. Encouragingly, the results from this key project to date signal a potentially highly valuable onshore project with resources comparable to those usually reported offshore. A significant onshore domestic gas resource, as indicated at West Newton, has the potential to become an important transition fuel in helping the UK achieve its 2050 Net Zero target.
'Union Jack's initial successes in the USA, in just a few months, highlight the ease of entry and ability to execute business in that country, justifying the Board's decision to seek further growth opportunities internationally to bolster its flagship production and appraisal assets in the United Kingdom.
'Following the Company's USA entry, involving both the Andrews 1-17 discovery well and the financial attractions of Union Jack's expanding Mineral Royalties portfolio, I believe that the Board's optimism and our further expansion in the USA, executed alongside a proactive drilling campaign, will deliver material rewards in due course.
'Our appetite for additional growth opportunities has been whetted by our recent positive experience in the USA and discussions are at an advanced stage with Reach in respect of materially expanding our activities over the coming months and beyond.
'I am confident that the significant increase in drilling, appraisal and development activity now planned in the pursuit of growth from our balanced UK and USA portfolios has the potential for significant value creation for shareholders. We believe our heightened activity and the expected additional news-flow generated, combined with effective investor engagement on both sides of the Atlantic, will continue to attract the ongoing support of our existing shareholders and the attention of new investors, broadening the appeal of the Company to a wider audience.
'Overall, Union Jack is in sound financial health with a robust Balance Sheet and continues to be debt free.
'The future of Union Jack remains bright.'
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Source: Union Jack Oil
