Worth a Read???27 Aug 2021 17:41
The Future Remains Bright for Union Jack Oil
By Chris Bailey•27 Aug, 2021
This will likely be my last article on Union Jack as other commitments are taking up my time and the stock market is becoming secondary to these other interests.
I note the comments by BrokermanDan today regarding West Newton and would emphasize that to date, no official statement on operations has been released, so the finer details of exactly what has flowed, what hydrocarbons have been seen at surface is still unknown.
What needs to be remembered is that the whole operation was initially a gas play and oil the icing on the cake. From what I can glean, the gas is pretty much a done thing and this alone equates to a major discovery.
Union Jack is only a small joint venture partner in this, meaning they have low cost exposure. No oil does not make this a flop, it has been the excitement of investors that has made the oil discovery so important to the market, not the companies involved shouting about it!
One thing is for sure with Union Jack Oil that it's JV with Egdon and Europa in Wressle has secured the financial future of the company long term. This is an asset that David Bramhill and the board have increased their exposure to, a move that has now resulted in not only a few million pounds a year revenue, but the potential for a major increase in production near and long term. Wressle is free flowing 500 barrels of oil per day restricted. I see this doing 1000 bopd in the VERY near future as the local council are still reeling from a £400,000 costs award and will very unlikely oppose additional storage and transport. Bearing in mind their community donations will also increase.
Many shareholders originally bought into Union Jack for Wressle and now it has reached payday!
I see a very strong future for this company, it has multiple revenue streams which can be substantially expanded. Keddington (another asset the canny Mr. Bramhill has increased the company interest in) with a simple sidetrack could easily produce 300 bopd and if Wressle was producing 1000 barrels per day, revenues would be in the region of £10,000,000 net per annum. This excludes success at Biscathorpe and West Newton.
I have no doubts whatsoever Wressle and Keddington will achieve this within the next 12 months, moreso as Egdon Resources, the operator, will now be entering a new phase of revenue streams and will have the encouragement to continue with the cash bearing assets!
To all the LSE and ADVFN bulletin board bunch who continue to slate David Bramhill, he has achieved bringing an AIM listed UK oiler to profitability. How many can say that?
There is now a safety net for all investors as Union Jack is covering all costs, revenue streams are extremely positive looking forward and with time, this little company could transform into one of the strongest cases for investment in this sector.
In the meantime, I am now moving on to a personal project and limiting my ti
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