(Sharecast News) - Union Jack Oil reported significant net revenues exceeding $18m from the Wressle hydrocarbon development on Monday.
The development is situated within licences PEDL180 and PEDL182 in North Lincolnshire, located on the western margin of the Humber Basin.
Union Jack holds a 40% economic interest in this project.
Since production restarted at Wressle in August 2021, Union Jack has generated revenues of over $18m.
Currently, the Wressle-1 well's gross production is averaging 665 barrels of oil per day, with the operator actively evaluating the reservoir's response to increased pump rates.
Union Jack said its financial performance remained robust, with positive cash flow effectively covering all planned general and administrative expenses, operational expenditures and capital spend obligations.
As of 12 January, the company maintained cash, short-term receivables, and investments exceeding £9.45m.
Union Jack Oil said it was debt-free and was continuing to generate substantial cash.
"The $18m net revenues achieved to date from Wressle - UJO 40% - continue to bolster the company's balance sheet, complemented by additional cash-flow from the Keddington oilfield - UJO 55%," said executive chairman David Bramhill.
"Going forward, future production and revenue updates from Wressle will be reported on a quarterly basis.
"The Wressle-1 well has responded favourably to the new jet pump rate."
Bramhill said the engineers could decide to further increase these rates whilst the well performance was continually being optimised to maximise oil recovery volumes.
"The recently announced 263% increase in 2P reserves has led to a material upgrade in value of the Wressle development and we look forward to reporting on further progress at our flagship project."
At 0904 GMT, shares in Union Jack Oil were up 5.16% at 20.77p.
Reporting by Josh White for Sharecast.com.
Union Jack (UJO)