What an intense, positive RNS for Union Jack to issue this morning!
I don’t know quite what to like the most. The dividend which I am sure a lot will be pleased to hear about, the potential upgraded resources believed to be in the Ashover Grit, the money that is coming in from the royalties that is contributing to a dividend, the flow rates ensuring the company is still making plenty of cash, the fact it is being invested in the US which, if David Bramhills potentially hugely successful first well is as good as intimated or the fact the Penistone Flags is scheduled to be drilled at the earliest opportunity😲
I mean, all of this is seriously great news for shareholders, with updates still due on the Andrews-1-17 well and West Newton financing and mobilisation.
I also look forward to some sort of financial update on the Mineral Royalties. It is worthwhile noting that these are contributing to the dividend which is extremely interesting as little is really known about them. For anyone who would like a clear, precise explanation, you can find this here on the Pheasant Energy Website https://www.pheasantenergy.com/oil-and-gas-royalties/
The flow rate at Wressle is possibly a little lower than some may have expected but it is still being engineered to ensure the water cut remains manageable. No point taking any risks when it’s turning over 200 bopd for the company. It has also been confirmed that the water is being disposed of at a nearby location at a ‘negligible cost’. The actual water cut percentage is substantially less than what Wytch Farm deal with and they are the biggest onshore producer in the UK.
Added to this, the fact that the company has announced that a possible material and significant increase in resources has been highlighted in the Ashover Grit only confirms the longer term production from this super well. One can see decades of revenues from this asset.
It is looking more and more likely that Union Jack will also see Egdon/Heyco drill the Penistone Flags this year too, providing a substantial revenue from the gas to grid connection.
The US asset which is now being tested could throw up some surprises on the flow rates. Nobody states ‘major success’ unless they are confident in the reports back from the operator, so hopefully this will blow a few out of the water who aren’t overly positive on this venture.
All in all, yet again this company is performing in the way most tend to fail on. Super communication, a strong flow of news in 2024 with lots no doubt still to come.
NB. Lovely addition to the banners, a new tattoo and the US flag on the $19M image 😀
