Gross profits at Union Jack Oil fell 40% in 2024, compared with the year before, annual acounts revealed today.

The company reported falling oil and gas revenues, down 22% on 2023, and a drop in net profits off 24%.

The accounts, for the year ending 31 December 2024, also revealed plans to boost production at onshore oil sites in England in which Union Jack has a stake (figures in brackets below). The company also has onshore interests in the US.

Onshore sites update

Wressle PEDL180/182 (40%)

The accounts described the Wressle oil site in North Lincolnshire as “Union Jack’s key project with initial production rates far exceeding original expectations”.

The site had generated net revenues for Union Jack of more than US$23m before tax – allowing the company to be self-sustaining for almost four years, the accounts said.

But Wressle saw falling production in 2024, compared with red with the year before.

The average flow rate in 2024 was 416 barrels of oil per day (bopd), of which 166.4 was net to Union Jack. The average water cut was 32%.

A planning permission for two new production wells, a gas pipeline and processing equipment was quashed following the Supreme Court ruling on carbon emissions from fossil fuels.

Union Jack said a revised planning application was expected after assessing the emissions from burning Wressle oil.

The company said it was:

“confident that within Wressle development there remains significant upside which will support the Company with revenues for at least another decade”.

A forecast published in January 2024 increased 2P Reserves at Wressle ((total proven and probable reserves) by 263%. The report also reclassifiied 1,882mboe in the Penistone Flags Contingent Resources to 2P reserves.

Keddington, PEDL005 (55%)

Union Jack said there had been “material upgrades” at Keddington in Lincolnshire in 2024.

The company said the suspended field was production “close to being operational and poised to deliver the company additional revenue”. It added:

“oil production rates and reliability are anticipated to increase dramatically, especially with early flush production expected”.

Infill drilliing was forecast to “improve recovery” from the Keddington field by 113,0000-183,000 barrels of oil. Planning permission had already been granted for a step-out well and drilling would happen when “macro-economic conditions are favourable”.

Biscathorpe, PEDL253 (45%)

A new appeal process is being arranged for the Biscathorpe site in Lincolnshire.

An earlier successful appeal had also been overturned following the Supreme Court ruling. The accounts said:

“Union Jack’s technical team believe that Biscathorpe remains one of the largest unappraised conventional onshore discoveries within the UK.”

North Kelsey, PEDL241 (50%)

An updated resource assessment on the North Kelsey field, also in Lincolnshire, is pending review by Union Jack, the acccounts said. They added:

“Should the Joint Venture partners decide to drill an exploration well, a new planning application will be submitted to Lincolnshire County Council to enable the prospect to be drilled to assess the resource potential.”

West Newton, PEDL183 (16.665%)

Union Jack said the North Sea Transition Authority had approved a revised work programme for the two West Newton sites in East Yorkshire.

The company said future activity was expected:

“Expectations are that the Joint Venture partners will approve the recompletion of the A2 well as this is deemed the best low-risk and low-cost approach to de-risk the project.

Relinquished licences

Union Jack said several licences, in which it had an interest, were relinquished in 2024.

These werre PEDL118 (Dukes Wood) and PEDL203 (Kirklington). The company added it was “in the process of relinquishing” PEDL209 (Laughton).

Key figures

Gross profit: £1,968,101 (2023 £3,298,844)

Net proft: £649,213 ((2023 £859,089)

Profit for the year including impairments (licence EXL294): £10,148 (2023 £56,829)

Admin expenses, excluding impairments: £1,878,089 (2023 £2,057,506)

Oil and gas revenues: £3,929,722 (2023 £5,065,679)

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