When the Penistone Flags was tested 9 years ago, it flowed 12 bopd of 35-degree API oil (710 barrels of oil equivalent per day (boepd) from all zones) with Union Jack holding an 8.33% interest. Along with the Ashover Grit testing, free flowing oil production rates equivalent to 80 barrels of oil per day, it was all a great looking little investment by David Bramhill.
Today, Union Jack hold 40% of the Wressle-1 licence with the Ashover Grit flowing on average 600-700 bopd and the Penistone Flags now on the cards to be drilled this year.
Whilst this zone is an unknown in terms of how it will perform, a recent reclassification of 1,883 mboe in Penistone Flags Contingent Resources to 2P Reserves makes this next operation look as exciting as the Ashover Grit results which has turned the fortunes of the company.
This year, it is the plan to target the Penistone Flags, which is mainly a gas reservoir, and connect that gas production, via a new pipeline, to the grid network 600m away. There will also be an application to apply for hydrocarbon production until up to the late 2030’s.
Wressle really is something special for the partners involved in this asset, it will certainly ensure Union Jack’s future and along with their latest venture into the US, with near term cash flow also anticipated, the ‘future IS bright’
It is understood and appreciated according to David Bramhill that the share price is dire, but it certainly isn’t down to a lack of news. With SIX positive RNS’s already in the first six weeks, including acquisition news, confirmation of $18m revenues from Wressle, a substantial reserves update and more, I expect an uplift in both the sentiment and the share price before long. There are few companies in the position of profitability, revenue generation and no debt that Union Jack enjoy and sooner or later the radar will focus in the right direction.
