Wressle is Union Jack’s flagship asset, the one that has taken the company to profitability and keeps on adding to the company revenue stream, ensuring no fund raising for the foreseeable, future, if even ever again.
With in the region of $19,000,000 already received as its share of the production, this really sets Union Jack apart from any other UK oil producer and when they start on the Penistone Flags, this really is going to substantially increase the bank balance.
Mark Abbot of Egdon Resources stated in 2015 that he was pleased with the encouraging results from this zone with the hydrocarbon production rate of over 180 barrels of oil equivalent per day which exceeded pre-test expectations. During the course of this flow testing no associated formation water was produced and the gas production rate had to be halted as it had increased to the point where it is approaching the limits allowed under the environmental permit.
Obviously this is only supposition, but should it be possible to conduct another proppant squeeze with similar results to those from the Ashover Grit, Union Jack with its 40% would be potentially staring at an additional 280 bopd based on 700 bopd. Coupled with the present production from Wressle and Keddington, not including the US wells still to be drilled, revenues exceeding £2,500,000-£3,000,000 per MONTH could be seen. All this is not taking into account gas production from both the UK and the US assets when connected to their relative networks.
For me, right now, it is not about share buy-backs or dividends, you don’t get to a position of long term safety by giving the profit back. The company has proven it can reward shareholders already, but the political climate that could be about to change dramatically I feel it far wiser to ensure all of the costs are covered for the development of the US assets as well as the UK and when revenues are secured on these, see a far more generous dividend along with the rewards of a much stronger share price. Whilst this may not suit some, in the long term it is a shrewd move to ensure the company fortunes persist.
