Business
US$17m Net Revenues Landmark Reached at Wressle
US$17m Net Revenues Landmark Reached at Wressle.
About this update from Union Jack Oil Plc
[{"type":"text","content":"\n\n3 August 2023\nUnion Jack Oil plc\n(\"Union Jack\" or the \"Company\")\nUS$17,000,000 Net Revenues Landmark Reached at Wressle\nWressle-1 Update\n \nUnion Jack Oil plc (AIM: UJO) a UK focused onshore hydrocarbon production, development and exploration company, is pleased to announce that material landmark net revenues in excess of US$17,000,000 have been achieved from the Wressle hydrocarbon development (\"Wressle\"), located within licences PEDL180 and PEDL182 in North Lincolnshire on the western margin of the Humber Basin.\nThis RNS also provides a Wressle-1 well update.\nUnion Jack holds a 40% economic interest in this development.\nFinancial\n· Landmark US$17,000,000 revenues generated to Union Jack since re-commencement of production at Wressle in August 2021\n· 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\n· Over £2,995,000 has been returned to shareholders via dividends and share buy backs since October 2022\n· Cash and investments at 2 August 2023 in excess of £10,800,000\n· Debt free and remains highly cash generative\n \nWressle-1 Update\n· Cumulative production from the Wressle-1 well totalled 492,876 barrels of oil through to the end of July 2023\n· The well continues to produce under natural flow\n· Limited amounts of water have been observed with water cut averaging 3.72% of total field production during July 2023\n· The start of water production is significantly later than originally anticipated, providing further evidence that the expected recoverable volumes from the Ashover Grit will be at the higher end of the estimates detailed in the independent Competent Person`s Report (\"CPR\") prepared by ERCE and announced on 16 September 2016. The 2016 CPR forecast gross volumes from the Ashover Grit of 2P 0.54 MMstb and 3P 1.12 MMstb\n· The advent of water is now being incorporated into ERCE`s reservoir modelling and resource assessment work streams, which will be reflected in the new CPR\n· A more detailed update will be provided when the new CPR has been completed\n ...