2024-01-15 11:36:10
(Alliance News) – Union Jack Oil PLC said on Monday it has achieved revenue of more than $18 million at its Wressle hydrocarbon project since restarting production in August 2021.
UK focused onshore hydrocarbon production, the development has a 40% interest in the development located within licenses PEDL180 and PEDL182 in North Lincolnshire on the western margin of the Humber Basin, England. Shares rose 5.2% to 20.77 pence each in London late Monday morning.
Union Jack said gross production from the Wressle-1 well currently stands at a limited average of 665 barrels of oil per day, as the operator continues to evaluate the reservoir’s response to increased pumping rates.
The company said it continues to have positive cash flow covering all planned general and administrative expenses, operating expenses and capital expenditure commitments. It also said it had no debt and remained “highly cash generative.”
“Net revenues of $18 million to date from Wressle continue to strengthen the company’s balance sheet, complemented by additional cash flow from the Keddington oil field (55% [intérêt]). Going forward, Wressle production and revenue updates will be reported on a quarterly basis,” said David Bramhill, Executive Chairman.
“The Wressle-1 well has responded favorably to the new jet pumping rates. Engineers may decide to further increase these rates while well performance is continually optimized to maximize oil recovery volumes. The increase of 263 % of 2P reserves announced recently has led to a significant upgrade of the Wressle development and we look forward to reporting further progress on our flagship project.”
By Greg Rosenvinge, Alliance News Senior Reporter
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