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
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