(AIM: UJO)
Final Results for the Year Ended
Operational Highlights
· Successful hydrocarbon discovery at Wressle and decision to develop with a view to commencing commercial production during H2 2016
· The acquisition of a 10% interest in PEDL005(R) incorporating the Keddington Oilfield
Financial Highlights
· Cash balance in excess of
·
· The Company remains debt free
I am enthusiastic in respect of the year ahead and I look forward to reporting progress with our projects and new acquisitions during 2016 and beyond."
For further information please contact the following:
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+44 (0) 77871 60682 |
Shore Capital Nominated Adviser Corporate Broking |
+44 (0) 20 7408 4090 |
SP Angel |
+44 (0) 20 3470 0470 |
Public Relations |
+44 (0) 7768 537 739
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In accordance with the AIM Rules - Note for Mining and Oil and Gas Companies, the information contained within this announcement has been reviewed and signed off by
This announcement contains certain forward-looking statements that are subject to the usual risk factors and uncertainties associated with the oil and gas exploration and production business. While the directors believe the expectation reflected within this announcement to be reasonable in light of the information available up to the time of approval of this announcement, the actual outcome may be materially different owing to factors either beyond the Company's control or otherwise within the Company's control, for example owing to a change of plan or strategy.
Accordingly, no reliance may be placed on the forward-looking statements.
Chairman's Statement
2015 has been a successful year for Union Jack in which two significant advances within our asset portfolio took place. A decision was made to develop the Wressle discovery with a view to commencing commercial hydrocarbon production during H2 2016 and the Company acquired a 10% interest of PEDL005(R) incorporating the Keddington oilfield. In addition, first income was generated from test production from Wressle and other income was received from the sale of oil at Keddington. Subject to obtaining the necessary consents and permissions, management also expects revenues to be generated from successful development of the Wressle discovery.
Our strategic objective remains focused on building a successful
PEDL180 - Wressle
The Wressle discovery on PEDL180 located in
PEDL005(R) - Incorporating the Keddington Oilfield
In
Keddington has to date produced in excess of 300,000 barrels of oil and the Keddington-3Z well is currently producing approximately 30 barrels a day gross. Union Jack owns a 10% interest in the production and the associated infrastructure and production facilities. In addition, PEDL005(R) incorporates the Louth and North Somercotes Prospects which could be drilled in the future. The Keddington-5 development well was drilled post year end and during the course of drilling, elevated gas readings, indicative of the presence of hydrocarbons, were recorded from a gross interval of 141 metres, containing 62 metres of net sand. Subsequent testing of Keddington-5 sidetrack has initially seen production dominated by water and plans are being considered to isolate the zone of water production.
Following the results of the
The Louth Prospect is planned to be drilled in late 2017, subject to partner approval, planning and other consents. Located on the margins of the
PEDL201 - Burton on the Wolds
Drilling operations were completed in
Other Assets
Other assets within the Union Jack exploration portfolio include a 12% interest in PEDL253 containing the Biscathorpe Prospect and a 20% interest in PEDL241 containing the North Kelsey Prospect. Post year end the Company acquired a 10% conventional interest in PEDL209 which saw the drilling of the Laughton-1 exploration well in early 2016 which failed to discover commercial hydrocarbons.
A detailed review of Union Jack's asset base can be found in the Review of Operations section within the Annual Report and Financial Statements. This document can be accessed on the Company's website www.unionjackoil.com and a hard copy will be posted to shareholders in the near future.
CORPORATE AND FINANCIAL
The Company remains debt free and our cash balance as at
In
Administrative expenses for the year were 10% up on 2014 due to increased costs of some advisers and additional consulting fees. We apply strict financial and technical discipline to our activities and we pride ourselves on our low general and administrative costs. The Board intends to continue with the same low salary commitment going forward.
A further reduction in the Supplementary Tax rate from 20% to 10% in the
Our strategy of focusing on late stage drill-ready prospects helps to manage the portfolio from a technical perspective and shortens the lead time between the acquisition of an interest in an asset and drilling or initial production from any resulting discoveries. Union Jack is primarily involved in conventional hydrocarbon projects where costs are manageable and development of any discoveries can be achieved within a relatively short timeframe and on a cost effective basis by applying simple development techniques. We believe the full-cycle costs associated with onshore production, development and exploration in the
Union Jack has been insulated somewhat from the low oil price environment which has been observed by the industry for the past 15 months due to low operating costs onshore in the
I take this opportunity to thank the rest of my Board,
SUMMARY
I am enthusiastic in respect of the year ahead. Union Jack is in a sound position with an interest in a discovery at Wressle, which is moving closer to development, with a view to commencing commercial oil production during 2016, together with a healthy cash balance to progress projects and fund its existing portfolio of drill-ready potentially high impact exploration prospects.
In addition, Union Jack has firm intentions of expanding its interests in other areas of the
I look forward to reporting progress with our projects and new acquisitions during 2016 and beyond.
Executive Chairman
Income Statement
FOR THE YEAR ENDED
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|
|
- |
- |
Administrative expenses |
(605,742) |
(551,056) |
|
|
|
Operating loss |
(605,742) |
(551,056) |
Other income |
12,713 |
- |
Finance income |
6,569 |
4,702 |
|
|
|
Loss before taxation |
(586,460) |
(546,354) |
Taxation |
(841) |
(902) |
|
|
|
Loss for the financial year |
(587,301) |
(547,256) |
|
|
|
Attributable to: |
(587,301) |
(547,256) |
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|
|
Loss per share |
-(0.02) |
-(0.04) |
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|
|
Statement of Comprehensive Income
FOR THE YEAR ENDED
|
|
|
|
|
|
Loss for the financial year |
(587,301) |
(547,256) |
Other comprehensive income |
- |
- |
|
|
|
Total comprehensive loss for the financial year |
(587,301) |
(547,256) |
Balance Sheet
AS AT
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|
|
Assets |
1,165,077 |
832,100 |
Investments |
40,000 |
20,000 |
|
1,205,077 |
852,100 |
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|
|
Current assets |
27,232 |
33,238 |
Cash and cash equivalents |
3,078,311 |
3,474,320 |
|
3,105,543 |
3,507,558 |
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|
|
Total assets |
4,310,620 |
4,359,658 |
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|
|
Liabilities |
|
|
Trade and other payables |
85,649 |
260,974 |
Provisions |
18,000 |
- |
|
|
|
Total liabilities |
103,649 |
260,974 |
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|
|
Net assets |
4,206,971 |
4,098,684 |
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|
|
Capital and reserves attributable to the Company's equity shareholders |
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|
Called up share capital |
2,593,458 |
2,475,811 |
Share premium account |
4,042,698 |
3,282,848 |
Share-based payments reserve |
167,924 |
349,833 |
Retained earnings |
(2,597,109) |
(2,009,808) |
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|
|
Total equity |
4,206,971 |
4,098,684 |
Statement of Changes in Equity
for the year ended
|
Share |
Retained |
Share |
Share-based payment |
Total |
Balance at |
2,079,201 |
(1,462,552) |
- |
284,263 |
900,912 |
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|
|
|
|
|
Changes in equity |
396,610 |
- |
3,847,302 |
- |
4,243,912 |
Share issue costs |
- |
- |
(564,454) |
- |
(564,454) |
Total comprehensive income |
- |
(547,256) |
- |
- |
(547,256) |
Share-based payment charge |
- |
- |
- |
65,570 |
65,570 |
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|
|
|
|
|
Balance at |
2,475,811 |
(2,009,808) |
3,282,848 |
349,833 |
4,098,684 |
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|
|
|
|
|
Balance at |
2,475,811 |
(2,009,808) |
3,282,848 |
349,833 |
4,098,684 |
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|
|
|
|
|
Changes in equity |
117,647 |
- |
682,353 |
- |
800,000 |
Share issue costs |
- |
- |
(104,412) |
- |
(104,412) |
Expiry of share-based payments |
- |
- |
181,909 |
(181,909) |
- |
Total comprehensive income |
- |
(587,301) |
- |
- |
(587,301) |
|
|
|
|
|
|
Balance at |
2,593,458 |
(2,597,109) |
4,042,698 |
167,924 |
4,206,971 |
Statement of Cash Flows
FOR THE YEAR ENDED
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|
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Cash flow from operating activities |
(543,846) |
(574,154) |
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|
|
Cash flow from investing activities |
(534,320) |
(568,463) |
Purchase of investments |
(20,000) |
- |
Interest received |
6,569 |
4,702 |
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|
|
Net cash used in investing activities |
(547,751) |
(563,761) |
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|
|
Cash flow from financing activities |
800,000 |
4,243,912 |
Cost of issuing new shares |
(104,412) |
(498,884) |
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|
|
Net cash generated from financing activities |
695,588 |
3,745,028 |
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|
|
Net (decrease) / increase in cash and cash equivalents |
(396,009) |
2,607,113 |
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|
|
Cash and cash equivalents at beginning of financial year |
3,474,320 |
867,207 |
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|
|
Cash and cash equivalents at end of financial year |
3,078,311 |
3,474,320 |
Amounts in 2014 have been restated to classify
Notes to the Financial Statements
for the year ended
1 ACCOUNTING POLICIES
Basis of Preparation
The financial information in this announcement, which was approved by the Board of Directors on
Statutory accounts for
Whilst the financial information in this announcement has been prepared in accordance with the recognition and measurement criteria of International Financial Reporting Standards ("IFRS"), this announcement does not itself contain sufficient information to comply with IFRSs.
Significant Accounting Policies
The accounting policies and methods of computation followed in these financial statements are consistent
with those as published in the Company's Annual Report and Financial Statements for the year ended
The Annual Report and Financial Statements are available from the Company Secretary at the Company's registered office,
Going Concern
The directors have, at the time of approving the 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 in preparing the financial statements.
The Company's business activities, together with the factors likely to affect its future development, performance and position are set out in the Chairman's Statement, Review of Operations and the Strategic Report. The directors' forecasts demonstrate that the Company will meet its day to day working capital and share of estimated drilling costs over the forecast period from the cash held on deposit. The principal risk to the Company's working capital position is drilling cost overruns. The Company has sufficient funding to meet planned drilling expenditures and a level of contingency. Taking account of these risks, sensitised forecasts show that the Company should be able to operate within the level of funds currently held. The directors have 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 in preparing the financial statements.
2 LOSS PER SHARE
The Company has issued warrants over ordinary shares which could potentially dilute basic earnings per share in the future.
Basic loss per share is calculated by dividing the loss attributable to ordinary shareholders by the weighted average number of ordinary shares outstanding during the year.
During the current and prior year the Company had warrants in issue. At
Loss per share |
2015 |
2014 |
Loss per share from continuing operations |
(0.02) |
(0.04) |
The loss and weighted average number of ordinary shares used in the calculation of loss per share are as follows:
Loss per share |
2015 |
2014 |
|
Loss used in the calculation of total basic and diluted earnings per share |
(587,301) |
(547,256) |
|
Number of shares |
2015 |
2014 |
Weighted average number of ordinary shares for the purposes |
2,492,898,974 |
1,558,344,760 |
The Company has 831,680,400 deferred shares. These have not been included within the calculations of basic shares above on the basis that IAS 33 defines an ordinary share as an equity instrument that is subordinate to all other classes of equity instruments. Any residual interest in the assets of the Company would not currently, on liquidation, go to the deferred shareholders, hence they are not currently considered subordinate. These deferred shares, being potential ordinary shares, have not been taken into account when calculating the diluted loss per share as their impact was anti-dilutive.
3 RECONCILIATION OF LOSS TO CASH GENERATED FROM OPERATIONS
|
|
|
Loss before taxation |
(586,460) |
(546,354) |
Finance income |
(6,569) |
(4,702) |
Income taxes paid |
(841) |
(902) |
|
(593,870) |
(551,958) |
|
|
|
Decrease in trade and other receivables |
6,006 |
7,435 |
Increase / (Decrease) in trade and other payables |
44,018 |
(29,631) |
|
|
|
Cash used in operations |
(543,846) |
(574,154) |
Amounts in 2014 have been restated to classify
4 Exploration and evaluation assets
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|
|
|
|
At 1 January |
|
|
832,100 |
44,294 |
Costs incurred during the year |
|
|
314,977 |
787,806 |
Provision for site restoration |
|
|
18,000 |
- |
At 31 December |
|
|
1,165,077 |
832,100 |
Intangible assets includes amounts capitalised for Wressle (PEDL180) of
5 SHARE CAPITAL
Allotted and issued: |
Class |
Nominal |
|
|
2,888,708,805 |
Ordinary |
0.025p |
722,177 |
604,530 |
831,680,400 |
Deferred |
0.225p |
1,871,281 |
1,871,281 |
Total |
|
|
2,593,458 |
2,475,811 |
Allotments during the year
In
Total consideration received was
Issue costs of
6 EVENTS AFTER THE BALANCE SHEET DATE
The following events have taken place after the year end:
In
In
In
7 COPIES OF THE ANNUAL REPORT AND FINANCIAL STATEMENTS
The Annual Report and Financial Statements will shortly be posted to shareholders and is now available on the Company's website www.unionjackoil.com.
This information is provided by RNS