Yet another positive RNS from Union Jack Oil. Their venture into the USA is proving to be an excellent decision by Executive Chairman David Bramhill.
The oil sector is under immense pressure with ludicrous taxation rates, opposition to any planning application to explore for oil, recent government legislation pledging to stop all drilling and licence grants along with the rather ridiculous belief the country can exist with wind and solar energy. This of course is not feasible and instead of recovering our own oil and gas, we will be importing all of the fossil fuels we need.
It could be Union Jack will be part of that process as the oil being recovered in the US from our Andrews well could be coming back to the UK in a tanker 😂
The Andrews 2-17 is the second well to be drilled successfully by the seems of things. The company announces they have entered the Hunton Limestone and encountered elevated gas readings and good oil and gas shows. One could fairly assume the outlook for this well will be pretty much the same as the Andrews 1-17 where investors eagerly await the stabilised flow rates to be announced.
What is interesting to note from the announcement of a successful drill for that well was that In an incredibly short space of time, the Andrews 1-17 well was contributing to Union Jack’s revenue stream with up to a 100 bopd recorded. Whilst ‘recorded’ doesn’t necessarily mean it will continue to do so, this was during the clean up and testing phase prior to any upgrades.
Additionally, a lot of the equipment on site will be utilised for this second well. The storage tanks, the electricity supply, whatever gas to grid installations that are in the process, all cash savings and potentially speeding up the overall process of bringing this well to a stabilised flow rate.
We are only in mid July and since the start of 2024, the company have drilled two wells, entered into a number of deals to drill additional wells, are in the process of developing a secondary recovery facility, own a substantial number of Mineral Royalties that are already returning revenues and to date, all paid for from cash recieved from their UK oil sales.
I am reliably informed that the Penistone Flags gas development is estimated to return $2,000,000 dollars per MONTH to Union Jack. Yes, you read that correctly, and that is NET.
For me, there is no doubt this company will be a success for shareholders. It is a wholly different operation to previous years where placings were an absolute killer. Placings that covered costs of West Newton drilling, licence retentions, Wressle drilling and constant upgrades. Planning applications, appeal costs etc.
Never have we seen such a level of progress against all the negativity over fossil fuels, all paid for in cash. One should laugh at anyone demanding bigger dividends and buy-backs. I consider these to be benefits that very few companies ever provide or action until they are stable and have substantial revenue streams with low investment outlay. Union Jack is not yet at that stage.
When we see $2,000,000 per month coming in, THEN we will see more substantial returns to shareholders in dividends and of course a much higher share price.
Exciting times lie ahead and I for one can see that and can wait!
