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.
(AIM: UJO)
Unaudited Results for the Six Months Ended
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
"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:
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+44 (0)7787 160 682 |
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+44 (0)20 3470 0470 |
Nominated Adviser and Joint Broker |
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Turner Pope Investments (TPI) Ltd |
+44 (0)20 3621 4120 |
Joint Broker |
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CHAIRMAN'S STATEMENT
I am pleased to present this Half Yearly Report for the six months ended
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
In
Union Jack holds a 7.5% interest in PEDL143 in the
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
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
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
The second planned well in our forward drilling programme, the Biscathorpe-2 conventional well located on PEDL253 in
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
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
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
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
In
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
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.
Executive Chairman
Unaudited income Statement
FOR THE SIX MONTHS ENDED
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Notes |
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Year |
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17,331 |
8,152 |
22,119 |
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528 |
- |
(577) |
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(310,152) |
(262,042) |
(598,075) |
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(316,230) |
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(315,702) 95 |
(253,890) 3,193 |
(897,363) 5,654 |
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3 |
(315,607) - |
(250,697) - |
(891,709) (885) |
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(315,607) |
(250,697) |
(892,594) |
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Unaudited Statement of Comprehensive Income
FOR THE SIX MONTHS ENDED
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Year |
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(315,607) - |
(250,697) - |
(892,594) - |
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(315,607) |
(250,697) |
(892,594) |
Unaudited Balance Sheet
AS AT
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Notes |
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As at |
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2,829,249 40,000 |
1,611,820 40,000 |
2,079,340 40,000
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2,869,249 |
1,651,820 |
2,119,340 |
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65,843 |
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2,081,291 |
2,343,985 |
1,924,664 |
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Liabilities |
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53,799 |
21,531 |
85,312 |
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Net assets |
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4,878,741 |
3,956,274 |
3,940,692 |
Share capital |
4
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5,561,579 167,924 (3,805,308) |
167,924 (2,847,806) |
167,924 (3,489,703) |
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4,878,741 |
3,956,274 |
3,940,692 |
Unaudited Statement of Cash Flows
FOR THE SIX MONTHS ENDED
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Cash outflow from operating activities |
(344,280) |
(346,351) |
(694,601) |
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95
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3,193
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5,654
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(755,891) |
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(140,342) |
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(73,685)
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1,253,655 |
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626,315 |
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153,484 |
(789,901) |
(1,216,347) |
Cash and cash equivalents |
1,861,964
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3,078,311
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3,078,311
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2,015,448
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2,288,410
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1,861,964
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Notes to the Unaudited Financial Information
FOR THE SIX MONTHS ENDED
1 Accounting Policies
Basis of Preparation
These financial statements are for the six month period ended
The information for the year ended
The interim financial statements for the six months ended
The interim financial information in this report has been prepared in accordance with International Financial Reporting Standards ("IFRS") as adopted by the
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
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 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.
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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: |
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Six months |
Year |
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Six months |
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Year |
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2,888,708,805
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2,994,752,318
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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
At
At
At
5 Events after the Balance Sheet Date
There are no events after the balance sheet date to report.
6 Related Party Transactions
Charnia Resources (
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