Union Jack Oil PLC (LON:UJO) has told investors that its 20% owned Fiskerton Airfield Oilfield project has resumed production, meanwhile, new efforts to secure planning permission for the Wressle field are also advancing.
The onshore oil junior has a 15% stake in Wressle, where operator Egdon is currently conducting field work to address issues raised in the previously unsuccessful planning application – they relate to ground water and hydrological risk.
A new application is now anticipated next month.
“Wressle remains the ‘game changer’ for Union Jack and I am sure that the revised application that will address the points raised by the planning inspector resulting from the appeal process will empirically demonstrate the integrity of the revised development plan,” said David Bramhill, Union Jack executive chairman.
Fiskerton production restart
At Fiskerton, located around seven miles from Lincoln, a joint venture led by Egdon is working to enhance field output which had stalled due to under investment in the past.
Initially, it has undertaken low cost well interventions and two workover wells have been successfully been completed since January.
Production has subsequently resumed and the project is now flowing around 30 barrels per day, up from the 16 bopd pre-workover rate. More than 1,250 barrels of oil have been produced from the site since the restart, with the crude fed to the refinery at Immingham, North East Lincolnshire.
“We expect there to be incremental rises in production at Fiskerton as the partners fine tune and learn more about field production and individual well characteristics,” Bramhill said.
“The payback time in respect of our investment represents excellent value given the modest entry price.
“Our share of production at Fiskerton, added to our 20% interest in the producing Keddington oilfield, all help improve cash flow.”
Bramhill added: “I remain confident that Union Jack will achieve its objective of becoming a cash flow positive company in due course."