ADVFN Logo

We could not find any results for:
Make sure your spelling is correct or try broadening your search.

Trending Now

Toplists

It looks like you aren't logged in.
Click the button below to log in and view your recent history.

Hot Features

Registration Strip Icon for default Register for Free to get streaming real-time quotes, interactive charts, live options flow, and more.

UJO Union Jack Oil Plc

14.50
-0.50 (-3.33%)
28 Mar 2024 - Closed
Delayed by 15 minutes
Share Name Share Symbol Market Type Share ISIN Share Description
Union Jack Oil Plc LSE:UJO London Ordinary Share GB00BLH1S316 ORD 5P
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  -0.50 -3.33% 14.50 14.00 15.00 15.25 14.25 15.25 619,997 14:14:14
Industry Sector Turnover Profit EPS - Basic PE Ratio Market Cap
Oil And Gas Field Expl Svcs 8.51M 3.61M 0.0320 4.53 16.34M

Union Jack Oil PLC Half Year Report (6437P)

04/09/2017 7:00am

UK Regulatory


Union Jack Oil (LSE:UJO)
Historical Stock Chart


From Mar 2019 to Mar 2024

Click Here for more Union Jack Oil Charts.

TIDMUJO

RNS Number : 6437P

Union Jack Oil PLC

04 September 2017

Market Abuse Regulation (MAR) Disclosure

Certain information contained in this announcement would have been deemed inside information for the purposes of Article 7 of Regulation (EU) No 596/2014 until the release of this announcement.

4 September 2017

UNION JACK OIL PLC

(AIM: UJO)

Unaudited Results for the Six Months Ended 30 June 2017

Union Jack Oil plc ("Union Jack" or the "Company"), a UK-focused, onshore oil and gas exploration and production company, is pleased to announce its unaudited results for the Half Year ended 30 June 2017.

Highlights

-- Further acquisition to 15% in PEDL180 and PEDL182 containing the Wressle discovery, providing additional proven reserves in an attractive development and appraisal project

-- Company is fully funded for current planned drill programme including Holmwood-1 and Biscathorpe-2 wells and further production acquisition

   --     Company remains debt free 

David Bramhill, Executive Chairman, commented:

"The next six months for Union Jack are expected to be particularly active with drilling of the high-impact Holmwood-1 and Biscathorpe-2 conventional exploration wells.

We believe our onshore focus and low-cost business model, combined with actively managing the risk profile of each asset, ensures we meet our stated objective of building a balanced, low-risk portfolio combining appropriate components of production, appraisal, discovery and exploration.

I look forward to reporting further on the progress of our existing projects and any potential new project we bring to our portfolio.

The future of Union Jack remains bright."

For further information please contact the following:

 
 Union Jack Oil plc            +44 (0)7787 160 682 
 David Bramhill 
 
 SP Angel Corporate Finance 
  LLP                          +44 (0)20 3470 0470 
 Nominated Adviser and 
  Joint Broker 
 Lindsay Mair 
 Stephen Wong 
 Richard Hail 
 
 Turner Pope Investments 
  (TPI) Ltd                    +44 (0)20 3621 4120 
 Joint Broker 
 Ben Turner 
 James Pope 
 

CHAIRMAN'S STATEMENT

I am pleased to present this Half Yearly Report for the six months ended 30 June 2017 to the shareholders of Union Jack Oil plc ("Union Jack" or the "Company").

The past six months have seen, as expected, a period of steady progress for Union Jack, a highlight being the acquisition of a further 3.33% interest in PEDL180 and PEDL182, for a consideration of GBP600,000. These licences contain the Wressle discovery and the Company now holds a 15% interest in this asset, providing additional proven reserves and increased exposure to an attractive development project and appraisal opportunity.

In February 2017, the Company raised approximately GBP1.4 million before expenses in order to acquire the additional interests in PEDL180 and PEDL182 and interests in other production or drill-ready assets. In respect of the potential purchase of further attractive assets, Union Jack is currently conducting a review of a production and development asset that, if executed as expected, will lead to its inclusion within our balanced portfolio during Q3/Q4 2017 and the consideration will be paid for from existing funds.

Union Jack holds a 7.5% interest in PEDL143 in the Weald Basin containing the Holmwood Prospect and a 12% interest in PEDL253 in Lincolnshire containing the Biscathorpe Prospect, both drill-ready, conventional assets and part of our forward drilling programme.

The operators of PEDL143 and PEDL253 manage these drill-ready assets professionally on behalf of the Company and the other Joint Venture partners and provide sustained and effective communication with the relevant authorities such as the Oil and Gas Authority ("OGA"), Environment Agency ("EA"), the Health and Safety Executive ("HSE") and other organisations to obtain the multiple permits required to enable the proposed drilling of the Holmwood-1 and Biscathorpe-2 wells to proceed in a safe and environmentally sensitive manner.

On our forward drilling programme, Union Jack's first well is expected to be the Holmwood-1 conventional exploration well located within PEDL143 in the Weald Basin. Drilling operations at Holmwood-1 are expected to commence during Q4 2017 once final approvals are in place. The well has been assessed as having a 33% geological chance of success.

In addition to targets in the Portland and Corallian sandstones where the operator has estimated gross mean prospective resources of 5.6 mmbls of oil ("mmbo"), Holmwood-1 will also test the highly prospective Kimmeridge Limestone play which has been confirmed is evident in recent wells at Broadford Bridge, Brockham and Horse Hill. Over the next few months, production testing at these three discoveries should provide further insights across the Weald Basin into the commerciality of the Kimmeridge Limestone. These discoveries provide us with additional confidence given their proximity to our Holmwood-1 well and increases our perception of the chance of success at this important well in the Weald Basin. We will follow the results of production testing with interest.

The second planned well in our forward drilling programme, the Biscathorpe-2 conventional well located on PEDL253 in Lincolnshire, moved closer to being realised with the issue in July 2017 by the EA of the environmental permits for the well.

Drilling operations at Biscathorpe-2 are expected to commence early in 2018 and the well has been assessed as having a 40% geological chance of success. The Biscathorpe Prospect is estimated by the operator to hold gross mean prospective resources of 14 mmbo. However, this figure could be significantly larger if a potential stratigraphic trapping mechanism that enhances the westerly closure of the prospect can be confirmed by drilling.

The Biscathorpe Prospect is located between Lincoln and Louth on the southern margin of the Humber Basin geological structure and is on-trend from, and to the west of, the producing Keddington oilfield (Union Jack 10%) and the Saltfleetby gas field.

The Biscathorpe-2 well will target a down-dip area of the structure identified following the drilling of the Biscathorpe-1 well in 1987 by BP which found oil in a thin sandstone of Westphalian age at the crest of the structure. The sandstone is expected to thicken and deepen to the north and west of the original well and has been defined by modern 3D seismic and is the justification for drilling this well and is referred to as the Biscathorpe "concept".

Union Jack commissioned an independent review of the Biscathorpe 3D seismic by geophysical consultants Sotwell Exploration Ltd ("Sotwell") during the period under review. Key points highlighted were that, in Sotwell's opinion, the Biscathorpe "concept" is supported with good evidence of the possibility of the sand thickening away from the previous well location, that the whole area is very attractive for oil exploration and that a potential "mega play" trap is feasible with further upside from a stratigraphic trapping mechanism.

In respect of the Wressle oilfield development, in January and July, planning consent for the development of the Wressle oilfield was declined by the North Lincolnshire District Planning Committee, despite recommendations to approve from the Council's Planning Officers on each occasion.

Significant efforts by the operator during the period have been made to progress the Wressle development. Appeals have been co-joined against both of these decisions and we expect the combined appeal to be heard in early November 2017.

The appeal will be heard by an independent inspector who will consider the application in the context of its planning merits.

We remain optimistic in respect of a positive outcome of the appeal which would see the commencement of operations to establish long-term production adding a further 75 barrels of oil per day net to Union Jack's production.

A detailed review of Union Jack's asset base can be found in the Review of Operations section within the Half Yearly Report and also within a Corporate Presentation which can be viewed on the Company's website www.unionjackoil.com.

CORPORATE AND FINANCIAL

At the time of writing, cash balances stand at approximately GBP1.9 million, enough to comfortably cover the costs of our current committed drilling and development programme which includes the Holmwood-1 and Biscathorpe-2 conventional wells and the Wressle development. Significantly, Union Jack remains debt free.

In February 2017, the Company raised GBP1.4 million before expenses from an oversubscribed placing to be used primarily for acquisitions. As previously stated, part of the funds raised were used to purchase a further 3.33% in PEDL180 and PEDL182 containing the Wressle development. There also remains sufficient cash from the placing to effect a potential further production focused acquisition during Q3 or early Q4 2017.

The Board continues to apply strict financial and technical discipline to the Company's activities and we pride ourselves on our relatively low general and administrative costs.

I would like to take this opportunity to thank our ever supportive shareholders and, in addition, the rest of Union Jack's Board, being Joe O'Farrell, Graham Bull and Ray Godson, for their guidance, and our team of advisers, all of whom work closely with the Company to ensure a smooth operating entity going forward.

SUMMARY

The next six months for Union Jack are expected to be particularly active with drilling of the high-impact Holmwood-1 and Biscathorpe-2 conventional exploration wells, resolution of the development approval of the Wressle oilfield and the potential acquisition of an interest in a further production asset. Success with any one, or more, of these activities could have a transformational effect on Union Jack.

We believe our onshore focus and low-cost business model, combined with actively managing the risk profile of each asset, ensures we meet our stated objective of building a balanced, low-risk portfolio with significant upside potential combining appropriate components of production, appraisal, discovery and exploration.

I look forward to reporting further on the progress of our existing projects and any potential new project we bring to our portfolio.

The future of Union Jack remains bright.

David Bramhill

Executive Chairman

4 September 2017

Unaudited income Statement

FOR THE SIX MONTHSED 30 JUNE 2017

 
                                                                                Year 
                                         Six Months        Six Months          ended 
                                              ended             ended    31 December 
                                            30 June           30 June           2016 
                                     2017 Unaudited    2016 Unaudited      Unaudited 
                            Notes               GBP               GBP            GBP 
=========================  ======  ================  ================  ============= 
                                             17,331             8,152         22,119 
  Revenue                                  (16,803)                 -       (22,696) 
  Cost of Sales 
 
  Gross profit (loss)                           528                 -          (577) 
-------------------------  ------  ----------------  ----------------  ------------- 
                                          (310,152)         (262,042)      (598,075) 
  Administrative 
  expenses                                  (6,078)                 -      (298,711) 
   Impairment 
 
  Total administrative 
  expenses                                (316,230)         (262,042)      (896,786) 
-------------------------  ------  ----------------  ----------------  ------------- 
                                          (315,702)         (253,890)      (897,363) 
  Operating loss                                 95             3,193          5,654 
  Finance income 
-------------------------  ------  ----------------  ----------------  ------------- 
                                          (315,607)         (250,697)      (891,709) 
  Loss before taxation          3                 -                 -          (885) 
  Taxation- 
-------------------------  ------  ----------------  ----------------  ------------- 
 
  Loss for the period 
  / year                                  (315,607)         (250,697)      (892,594) 
-------------------------  ------  ----------------  ----------------  ------------- 
 
  Attributable to: 
  Equity shareholders 
  of the Company                          (315,607)         (250,697)      (892,594) 
-------------------------  ------  ----------------  ----------------  ------------- 
 
  Loss per share 
  Basic and diluted 
  loss per share (pence)        2            (0.01)            (0.01)         (0.03) 
-------------------------  ------  ----------------  ----------------  ------------- 
 

Unaudited Statement of Comprehensive Income

FOR THE SIX MONTHSED 30 JUNE 2017

 
                                                                         Year 
                                  Six Months        Six Months          ended 
                                       ended             ended    31 December 
                                     30 June           30 June           2016 
                              2017 Unaudited    2016 Unaudited      Unaudited 
                                         GBP               GBP            GBP 
=========================   ================  ================  ============= 
 
  Loss for the financial 
  period/year 
  Other comprehensive              (315,607)         (250,697)      (892,594) 
  income                                   -                 -              - 
--------------------------  ----------------  ----------------  ------------- 
 
  Total comprehensive 
  loss 
  for the period 
  / year                           (315,607)         (250,697)      (892,594) 
--------------------------  ----------------  ----------------  ------------- 
 

Unaudited Balance Sheet

AS AT 30 JUNE 2017

 
                                                                                   As at 
                                                  As at             As at    31 December 
                                                30 June           30 June           2016 
                                         2017 Unaudited    2016 Unaudited      Unaudited 
                                Notes               GBP               GBP            GBP 
=============================  ======  ================  ================  ============= 
 
 
 
 Assets 
   Non-current assets                                                          2,079,340 
  Exploration and 
   evaluation assets                          2,829,249         1,611,820         40,000 
  Investments                                    40,000            40,000 
-----------------------------  ------  ----------------  ----------------  ------------- 
                                              2,869,249         1,651,820      2,119,340 
 
 Current assets                                  65,843            55,575         62,700 
  Trade and other 
   receivables                                2,015,448         2,288,410      1,861,964 
   Cash and cash equivalents 
-----------------------------  ------  ----------------  ----------------  ------------- 
                                              2,081,291         2,343,985      1,924,664 
-----------------------------  ------  ----------------  ----------------  ------------- 
 
  Total assets                                4,950,540         3,995,805      4,044,004 
-----------------------------  ------  ----------------  ----------------  ------------- 
 
 Liabilities 
  Current liabilities                            53,799            21,531         85,312 
  Trade and other 
   payables                                      18,000            18,000         18,000 
   Provisions 
-----------------------------  ------  ----------------  ----------------  ------------- 
 
  Total liabilities                              71,799            39,531        103,312 
-----------------------------  ------  ----------------  ----------------  ------------- 
 
   Net assets                                 4,878,741         3,956,274      3,940,692 
-----------------------------  ------  ----------------  ----------------  ------------- 
 
  Capital and reserves 
  attributable 
   to the Company's 
   equity shareholders 
  Share capital                     4         2,954,546         2,593,458      2,696.399 
   Share premium                              5,561,579         4,042,698      4,566,072 
   Share-based payment 
   reserve                                      167,924           167,924        167,924 
   Accumulated deficit                      (3,805,308)       (2,847,806)    (3,489,703) 
-----------------------------  ------  ----------------  ----------------  ------------- 
 
  Total assets                                4,878,741         3,956,274      3,940,692 
-----------------------------  ------  ----------------  ----------------  ------------- 
 

Unaudited Statement of Cash Flows

FOR THE SIX MONTHSED 30 JUNE 2017

 
 
                                    Six months        Six months            Year 
                                         ended             ended           ended 
                                       30 June           30 June     31 December 
                                2017 Unaudited    2016 Unaudited            2016 
                                           GBP               GBP       Unaudited 
                                                                             GBP 
============================  ================  ================  ============== 
 
   Cash outflow from 
   operating activities              (344,280)         (346,351)       (694,601) 
----------------------------  ----------------  ----------------  -------------- 
 
 Cash flow from investing 
  activities 
  Purchase of intangible 
   assets                            (755,986)         (446,743)     (1,153,715) 
   Interest received                        95             3,193           5,654 
----------------------------  ----------------  ----------------  -------------- 
 
  Net cash used in 
  investing activities               (755,891)         (443,550)     (1,148,061) 
----------------------------  ----------------  ----------------  -------------- 
 
  Cash flow from financing 
  activities                         1,393,997                 - 
  Proceeds on issue 
   of new shares                     (140,342)                 -         700,000 
   Cost of issuing 
   new shares                                                           (73,685) 
----------------------------  ----------------  ----------------  -------------- 
 
  Net cash generated 
  from 
  financing activities               1,253,655                 -         626,315 
----------------------------  ----------------  ----------------  -------------- 
 
  Net increase / (decrease) 
  in 
  cash and cash equivalents            153,484         (789,901)     (1,216,347) 
----------------------------  ----------------  ----------------  -------------- 
 
 Cash and cash equivalents 
  at beginning of 
  period / year                      1,861,964         3,078,311       3,078,311 
----------------------------  ----------------  ----------------  -------------- 
 
  Cash and cash equivalents 
  at end of period 
  / year                             2,015,448         2,288,410       1,861,964 
----------------------------  ----------------  ----------------  -------------- 
 

Notes to the Unaudited Financial Information

FOR THE SIX MONTHSED 30 JUNE 2017

   1              Accounting Policies 

Basis of Preparation

These financial statements are for the six month period ended 30 June 2017.

The information for the year ended 31 December 2016 does not constitute statutory financial statements as defined in section 434 of the Companies Act 2006. A copy of the statutory financial statements for that period has been delivered to the Registrar of Companies. The Auditor's Report was not qualified, did not include a reference to any matters to which the Auditor drew attention by way of emphasis without qualifying the report and did not contain statements under section 498(2) or (3) of the Companies Act 2006.

The interim financial statements for the six months ended 30 June 2017 are unaudited.

The interim financial information in this report has been prepared in accordance with International Financial Reporting Standards ("IFRS") as adopted by the European Union ("EU") applied in accordance with the provisions of the Companies Act 2006.

The financial statements have been prepared under the historical cost convention. The principal accounting policies have been consistently applied to all periods presented.

Significant Accounting Policies

The accounting policies and methods of computation followed in the interim financial statements are consistent with those as published in the Company's Annual Report and Financial Statements for the year ended 31 December 2016.

The Annual Report and Financial Statements are available from the Company Secretary at the Company's registered office, 6 Charlotte Street, Bath BA1 2NE or on the Company's website www.unionjackoil.com.

Going Concern

The Directors have, at the time of approving the interim financial statements, a reasonable expectation that the Company has adequate resources to continue in operational existence for the foreseeable future. Thus they continue to adopt the going concern basis of accounting.

   2              Loss per Share Attributable to the Equity Shareholders of the Company 

Basic loss per share is calculated by dividing the earnings attributable to ordinary shareholders by the weighted average number of ordinary shares outstanding during the period.

Given the Company's reported loss for the period, warrants are not taken into account when determining the weighted average of ordinary shares in issue during the period and therefore the basic and diluted earnings per share are the same.

 
 
  Basic loss per share      Six months    Six months           Year 
                                 ended         ended          ended 
                               30 June       30 June    31 December 
                                  2017          2016           2016 
                                 pence         pence          pence 
========================  ============  ============  ============= 
 Loss per share from 
  continuing operations         (0.01)        (0.01)         (0.03) 
------------------------  ------------  ------------  ------------- 
 
 
 The loss and weighted average number of ordinary 
  shares used in the calculation of basic earnings 
  per share are as follows: 
---------------------------------------------------------------------------------- 
                                                       Six months             Year 
                                      Six months            ended            ended 
                                           ended          30 June      31 December 
                                         30 June             2016             2016 
                                            2017              GBP              GBP 
                                             GBP 
===============================  ===============  ===============  =============== 
 
  Loss used in the calculation 
  of total 
  basic and diluted 
  earnings per share                   (315,607)       (250, 697)        (892,594) 
-------------------------------  ---------------  ---------------  --------------- 
 
                                      Six months                              Year 
  Number of Shares                         ended       Six months            ended 
                                         30 June            ended      31 December 
                                            2017          30 June             2016 
                                                             2016 
===============================  ===============  ===============  =============== 
 
  Weighted average number 
  of ordinary 
  shares for the purposes 
  of basic and 
  diluted earnings 
  per share                        3,962,243,702    2,888,708,805    2,994,752,318 
-------------------------------  ---------------  ---------------  --------------- 
 
   3              Taxation 

There was no tax charge for the half yearly period due to the loss incurred. A deferred tax asset in respect of trading losses and share-based payments has not been recognised due to the uncertainty of timing of future profits. The trading tax losses are recoverable against suitable future trading profits.

   4              Share Capital 

In February 2017, 1,032,589,694 new ordinary shares were issued for cash at 0.135 pence per share raising approximately GBP1,400,000 before expenses of GBP140,342.

At 30 June 2017, there were 4,333,063,205 ordinary shares of a nominal value of 0.025 pence in issue.

At 30 June 2017, there were 831,680,400 deferred shares of 0.225 pence nominal value in issue.

At 30 June 2017, there were 55,052,548 warrants outstanding and exercisable.

   5              Events after the Balance Sheet Date 

There are no events after the balance sheet date to report.

   6              Related Party Transactions 

Charnia Resources (UK), an unincorporated entity owned by Graham Bull, non-executive director, received from the Company the sum of GBP25,125 during the period under review in respect of consulting fees.

Jayne Bramhill, spouse of David Bramhill, received from the Company the sum of GBP3,000 during the period under review in respect of IT maintenance and administration costs.

   7              Copies of the Half Yearly Report 

A copy of the Half Yearly Report will shortly be posted to shareholders, and is now available on the Company's website www.unionjackoil.com.

This information is provided by RNS

The company news service from the London Stock Exchange

END

IR LLFFEAAILIID

(END) Dow Jones Newswires

September 04, 2017 02:00 ET (06:00 GMT)

1 Year Union Jack Oil Chart

1 Year Union Jack Oil Chart

1 Month Union Jack Oil Chart

1 Month Union Jack Oil Chart

Your Recent History

Delayed Upgrade Clock