Losses in Union Jack Oil more than doubled in the first half of 2020, compared with the same period last year.

Interim accounts, published today for the year to June, showed total comprehensive loss was £935,151, up from £484,068 in 2019. The operating loss almost doubled to £892,682.

Revenue was down by 18% to £62,933 while cash outflow on operations fell to £681,137, 40% below the same period in 2019.

But the company reported an increase in exploration and evaluation assets, up from £5.5m to £7.2, and a rise in cash at the bank to £4,6m, from £1.4m a year ago.

Union Jack’s executive chairman, David Bramhill, said there had been “significant progress” at its interests at West Newton in East Yorkshire, Wressle in North Lincolnshire and Biscathorpe in Lincolnshire. He said:

“The board remains both confident and optimistic and the future of Union Jack remains bright.”

Union Jack responded last week to rumours that a share placing was imminent. It said it had funds for drilling and testing at West Newton-B and oil production at Wressle.

It said:

“It is intended that the proceeds of any such fundraising will principally be used to continue to fund the company’s flagship and other projects, and additional opportunities.”

Today’s accounts reported that the conductor rig at West Newton-B had drilled to approx 80m. Drilling the borehole was imminent and expected to continue for 6-10 weeks, the company said. This would be followed by what Union Jack described as a combined testing programme on the well (WNB-1) and on WNA-2, the second well drilled nearby at the West Newton-A site.

Union Jack also repeated that plans to produce the first oil from Wressle in North Lincolnshire remained on track for October-December 2020.

It said a sidetrack was planned to Biscathorpe-2 well, in Lincolnshire, to target Westphalian formation and Dinantian oil colum

Also in Lincolnshire, Union Jack said there were plans for a sidetrack at Keddington, where the company has a 55% interest.

• At the time of writing, the Union Jack share price was unchanged at 0.1 775p.

Key figures

Revenue: £62,933; same period 2019 £76,409; year ended 31 December 2019 £136,959

Gross loss: £131,385; same period 2019 £44,633; year ended 31 December 2019 £80,639

Total admin expenses: £761,297; same period 2019 £441,976; year ended 31 December 2019 £1,624,559

Operating loss: £892,682; same period 2019 £486,609; year ended 31 December 2019 £1,705,198

Loss for the period: £885,300; same period 2019 £484,068; year ended 31 December 2019 £1,692,383

Loss per share: 0.01p; same period 2019 0.01p; year ended 31 December 2019 0.02p

Total comprehensive loss: £935,151; same period 2019 £484,068; year ended 31 December 2019 £1,724,595

Exploration and evaluation assets: £7,195,760; same period 2019 5,512,441; year ended 31 December 2019 £6,726,743

Total assets: £13,574,506; same period 2019 £8,982,451; year ended 31 December 2019 £14,234,850

Total liabilities: £1,004,780; same period 2019 £1,233,907; year ended 31 December 2019 £851,970

Cash outflow from operating activities: £681,137; same period 2019 £1,141,509; year ended 31 December 2019 £1,473,164

Cash and cash equivalents: £4,621,774; same period 2019 £1,442,126; year ended 31 December 2019 £6,626,519

Union Jack interests

PEDL005 (R) Keddington: 55%

PEDL180 Wressle: 40%

PEDL183 West Newton: 16.65%

PEDL241 North Kelsey: 20%

PEDL253 Biscathorpe: 30%

EXL294 Fiskerton Airfield: 20%