LONDON (Alliance News) - Union Jack Oil PLC Monday said its pretax loss was slightly wider in the first half of 2015, compared to a year earlier, as it continues to progress its exploration and development portfolio within the UK.
The company reported a GBP256,038 pretax loss in the first six months of 2015, slightly wider than the GBP220,773 loss in the same period a year earlier, after its administrative costs rose in the period. Union Jack does not currently generate any revenue.
As of Monday, Union Jack had a cash balance of GBP2.5 million with no debt and its current planned drill programme is fully funded, it said.
"The company's strategy is to continue focusing on its low-cost UK onshore portfolio and similar opportunities, with a view to generating additional value for its shareholders," said Chairman David Bramhill.
"To that end the company has already utilised its robust balance sheet position to increase its interests in drill-ready projects at Biscathorpe and North Kelsey and to acquire an interest in the producing Keddington oilfield at an attractive entry point post period end," he added.
In the period, the company continued with the ongoing well tests at the 700.0 million barrel oil and gas discovery at the Wressle-1 well within the PEDL180 licence, and increased its stake in the PEDL253 licence which includes the Biscathorpe prospect and in the PEDL241 licence which contains the North Kelsey project.
The Wressle discovery is part of a joint venture, with Egdon Resources PLC being the operator of the license with a 25% stake whilst Europa Oil and Gas (Holdings) PLC has a 33.3% interest. Union Jack holds a 8.3% stake, with Celtique Energie Petroleum Ltd holding the balance.
In February, when initial testing on Wressle-1 was carried out, the Ashover Grit flowed 80 barrels of oil and 47,000 cubic feet of gas per day for a 28 day period.
On the exploration front, Union Jack said it looks forward to the drilling of the Biscathorpe-2 well within PEDL253. During the period, Union Jack increased its interest to 12% from an original 10%. The exploration well is expected to be drilled during the first quarter of 2016. Union Jack will finance its share of the drill costs from existing cash resources.
The North Kelsey Prospect, located within PEDL241, in which Union Jack now holds a 20% interest, has multiple targets and is also planned for drilling during 2016.
"As we enter the closing stages of 2015 and start to look forward to 2016 and beyond, we find ourselves in a sound position, both in regard to the excellent opportunities within our existing asset portfolio and without any financial concerns in respect of funding our share of future drilling and other commitments," said Bramhill.
Union Jack shares were up 5.8% to 0.169 pence per share on Monday morning.
By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance
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Europa Oil & Gas (EOG)
Union Jack (UJO)