Union Jack Oil PLC on Wednesday said its latest drilling and development campaign will commence at the earliest opportunity once approved by regulators.
Union Jack, an onshore oil and gas company focused on assets in the US and UK, has confirmed that it will pay a dividend to shareholders with further details scheduled for release in May.
Among its assets, Union Jack holds a 40% interest in the Wressle oilfield in Lincolnshire, England.
Wressle has generated $19.0 million for the company to date since production restarted in August 2021.
Output in the first-quarter averaged around 530 barrels of oil per day, with an average water cut of just over 24%.
Current production comfortably exceeds a forecast set out by energy consultants ERC Equipoise.
Executive Chair David Bramhill said: ‘The next stage of Wressle’s development will underline the management’s approach to unlocking value and further optimise production and economic returns for shareholders from our flagship asset.
‘The company is in excellent financial health and well poised to take advantage of the opportunities before it.’
The company intends to build gas export facilities to the national grid and has devised plans to drill two additional wells at Wressle. After submitting a planning permission application, Union Jack now awaits a response from North Lincolnshire Council before going ahead with the next stage of the project.
Union Jack shares were up 6.9% to 24.06 pence each in London on Wednesday afternoon.
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