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
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