The leading partner in the Wressle oil site has reported an increase in revenues of 1099% in 2021, compared with the year before.
Union Jack Oil, which has a 40% stake in the site near Scunthorpe, also recorded its first gross profit on oil sales.
In annual accounts to the end of December 2021, the company said Wressle had extracted more than 150,000 barrels since production began in early 2021.
By April 2022, Union Jack’s net total revenues from Wressle had reached US$5m, it said.
The current daily rates were a total of 760-800 barrels of oil a day (bopd), more than 50% up on previous estimates of about 500 bopd, Union Jack said.
The company now predicts daily rates could rise further to 1,200-1,500 bopd, based on analysis of pressure tests.
But this depends on plans to pipe gas about 600m to the local distribution network, rather than burning the gas in a flare. These proposals would need planning permission and Environment Agency consents.
The Wressle site is currently undergoing continuous test production from the Ashover Grit formation.
Last month, a field development plan (FDP) was submitted for Wressle to the industry regulator, the North Sea Transition Authority.
If approved, Union Jack said the FDP would allow Wressle to complete the installation of permanent production facilities and develop the gas-to-grid scheme.
Plans would also be developed to extract oil and gas from the Penistone Flags reservoir at Wressle, the company said.
Union Jack said Wressle had produced no formation water to date. There was no measurable impact on surface or groundwater quality and no related seismicity. Noise had been within permitted levels, it said.
The company’s executive chairman, David Bramhill, said his confidence in Union Jack’s future remained “highly positive”. The company was now “witnessing a sea change in its business and prospects”, he said.
Union Jack remained debt-free and was funded for all operational and contracted or planned capital expenditure for at least the next 12 months, he said.
Union Jack also has interests in West Newton (16.665%), Biscathorpe (45%), Keddington (55%), North Kelsey (50%), and Fiskerton Airfield (20%)
Revenue: £1,894,875 (2020 £158,004)
Operating costs: £377,153 (2020 £286,892)
Gross profit: £782,562 (2020 loss of £186,603)
Loss before taxation: £853,013 (2020 £1,865,515)
Impairments to property, plant and equipment in PEDLs 118 and 203: £156,995 (2020 £106,714)
Impairments to intangible assets in PEDLs 181 and 201: £6,340 (2020 nil)
Admin expenses: £1,740,962 (2020 £1,590,576)
Cast and cast equivalents at year end: £5,977,541 (2020 £7,269,014)
Total assets at year end: £24,472,708 (2020 £21,340,804)
Non current assets at year end: £16,392,416 (2020 £13,725,734)
Intangible assets: £3,525,373 (2020 £6,134,717)
Tangible assets: £7,575,525 (2020 £6,452,287)
AGM at 11am on 23 June 2022, Osborne Clark, 2 Temple Back East, Temple Quay, Bristol BS1 6EG