Welcome to the new morningstar.co.uk! Learn more about the changes and how our new features help your investing success.

Union Jack Oil First-Half Loss Narrows A Bit; Wressle Outlook Bright

(Alliance News) - Union Jack Oil PLC on Monday said its loss was slightly wider in the first half ...

Alliance News 23 September, 2019 | 12:34PM
Email Form

(Alliance News) - Union Jack Oil PLC on Monday said its loss was slightly wider in the first half of 2019 as a result of administrative expenses but expressed optimism regarding the Wressle project in Lincolnshire.

The UK-focused onshore oil and gas firm reported a pretax loss of GBP484,068 for the six months ended June 30, widened from GBP418,759 the year before as total administrative expenses rose 9.8% to GBP441,976 from GBP402,469.

Revenue increased 4.6% to GBP76,409 from GBP73,044.

As at September 20, Union Jack's cash balance exceeded GBP2.8 million and the firm was debt free.

Executive Chair David Bramhill said: "We have seen significant progress at our three key project interests, namely West Newton, Biscathorpe and Wressle. Developments at these three assets can be expected to provide an active stream of newsflow throughout the remainder of 2019 and beyond.

"At West Newton A-2, the result of the extended well test has the potential to dramatically transform Union Jack. We anticipate further progress in our ongoing technical evaluation and appraisal of the West Newton A-1 and A-2 discoveries in the coming months that will help us confirm that West Newton is one of the largest onshore UK oil and gas ventures in recent decades.

"An ongoing technical evaluation at Biscathorpe also has the potential to identify a material resource with significant upside, as in the case of West Newton."

Union Jack holds a 28% interest in Wressle, where it has been confirmed that an appeal against denial of planning permission for the field will not go to court. North Lincolnshire Council confirmed on July 29 it will not be presenting evidence at the public inquiry, and will withdraw its case.

Bramhill said: "Assuming our appeal at Wressle is supported and production from Wressle is established, under the current oil price environment, Wressle would provide material cash flows after project operating costs net to Union Jack. Bearing in mind Union Jack's modest annual general and administrative costs, Wressle is expected to convert Union Jack into a cash flow positive company at the corporate level.

"The board remains both confident and optimistic and the future of Union Jack looks bright."

Shares in Union Jack were marginally lower at 0.26 pence on Monday at midday in London.

By Anna Farley; annafarley@alliancenews.com

Copyright 2019 Alliance News Limited. All Rights Reserved.

Email Form

Securities Mentioned in Article

Security Name Price Change (%) Morningstar
Union Jack Oil PLC 0.16 GBX 2.46 -

About Author

Alliance News

Alliance News provides Morningstar with continuously updating coverage of news affecting listed companies.

Audience Confirmation

By clicking 'accept' I acknowledge that this website uses cookies and other technologies to tailor my experience and understand how I and other visitors use our site. See 'Cookie Consent' for more detail.

  • Other Morningstar Websites