LONDON (Alliance News) - Union Jack Oil PLC Monday said its pretax loss narrowed in 2014, as 2013 included costs related to listing on AIM, and said it continues to look for new UK projects in which to get involved.
The oil and gas company reported a GBP546,354 pretax loss for 2014, narrower than the GBP708,851 loss in 2013 as administrative expenses fell to GBP551,056 from GBP713,876. Administrative expenses in 2013 included GBP199,406 in costs related to Union Jack's initial public offering of shares on AIM.
Union Jack operates in the UK over four projects, including the PEDL180 license which holds the Wressle oil discovery with fellow AIM-listed Egdon Resources PLC and Europa Oil & Gas Ltd. Egdon operates the well with a 25% holding, and Europa holds a 33.3% stake, whilst Union Jack holds a 8.3% stake. Celtique Energie holds the balance.
"The results of the Wressle-1 well have to date exceeded our expectations with all three reservoir objectives producing hydrocarbons to surface on test, and I look forward to updating shareholders on progress in monetising the discovery in the coming months," said Chairman David Bramhill.
"Looking beyond the Wressle-1 well and confirming its commerciality, we look forward to drilling the high potential Biscathorpe-2 well located within PEDL253 which resulted in a discovery by BP in respect of Biscathorpe-1 in 1987. Planning permission has been granted for the Biscathorpe-2 exploration well and, if successful, the possible upside for Union Jack is high," he added.
The company continues to look at other projects, with a focus on UK onshore, in which to become involved as partners. Union Jack remains adequately funded, it said, with around GBP3.0 million in cash on Monday.
Union Jack shares fell 5.2% to 0.218 pence per share on Monday morning.
By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance
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Europa Oil & Gas (EOG)
Union Jack (UJO)