Union Jack Oil has revealed plans for two new wells next year, as it reported its first profit.
In half-year accounts published today, Union Jack said the first horizontal appraisal well would be drilled at West Newton in East Yorkshire in 2023.
The company, which recorded a profit of £2.034m for the first six months to the end of June, said the West Newton well would allow a decision to be made on a field development plan.
A study on the West Newton prospect was also expected by the end of September 2022, Union Jack said.
The West Newton-A site received planning permission in March 2022 for four more wells and 20 years of production.
At Keddington, in Lincolnshire, Union Jack said seismic survey data was being reprocessed to select a sidetrack location and target. The well would be drilled in the first half of 2023, it said.
The accounts reported revenue of £4.384m, mainly from the company’s stake in the Wressle oil well near Scunthorpe.
The Wressle well has produced over 225,000 barrels of oil to date, with no water, Union Jack said. The company’s 40% interest has given it an average of 300 bopd, it said.
The Wressle licences are now in the production phase, which will continue until 2039. No production volumes have been reported in data up to June 2022 from the industry regulator, the North Sea Transition Authority.
Planning appeals have held up activity at two other Lincolnshire sites where Union Jack has interests.
At Biscathorpe, a hearing is due on 11 October 2022 into the refusal of planning permission for sidetrack drilling and long-term production.
At North Kelsey, an appeal against the refusal of extension of time is underway. A decision awaited on whether it will be dealt with by written submissions or a hearing.
Key figures for six months ending 30 June 2022
Profit: £2.034m (Six months to 30 June 2021: loss of £0.833m)
Revenue: £4.384m (Six months to 30 June 2021: £0.241m)
Total admin expenses: £0.789m (Six months to 30 June 2021: £0.828m)
Cash balances, receivables and liquid investments: £10.5m (at 6 September 2022)
If a 40% stake equates to an average of 300bopd then it would appear the 100% figure is somewhere shy of 1000.
That would equate with other information already out there, and what may be more interesting, is what would be the daily rate if/when the current constraints on output (dealing with the gas) are lifted.