(Alliance News) - Shares in Union Jack Oil PLC were in demand on Tuesday morning after the oil exploration firm announced a production milestone at its Wressle field in Lincolnshire.
More than USD2 million has been generated to Union Jack at Wressle since the recommencement of production on August 19 last year.
The North Lincolnshire site, on the western margin of the Humber Basin, is owned by joint venture partners Union Jack, with a 40% stake, while operator Egdon Resources PLC and Europa Oil & Gas Holdings PLC own 30% each.
Shares in Union Jack were up 9.7% to 14.67 pence in London on Tuesday. Egdon was up 2.7% to 1.54p, but Europa lost 1.5% to 1.33p.
Union Jack said that it was now for the first time cash flow positive covering all corporate, administrative and project operating costs.
"The revenues of in-excess of USD2 million to Union Jack, whilst under test production, are highly positive for the company which remains in prime financial health as the above figures illustrate," commented Executive Chair David Bramhill.
"We believe that Wressle holds considerable further upside which will be demonstrated over the foreseeable future and we look forward to reporting on progress in due course."
By Will Paige; willpaige@alliancenews.com
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Europa Oil & Gas (EOG)
Union Jack (UJO)