Union Jack Oil PLC’s (LON:UJO) has confirmed the onshore UK firm is fully funded for all its current drilling and well testing commitments in its full-year 2019 results statement.
The AIM-quoted company told investors it had a £5.5mln cash balance at the start of May 2019 and it remains debt-free.
"My confidence in respect of Union Jack's future remains highly positive,” executive chairman David Bramhill said in the statement.
READ: Union Jack continues to advance new West Newton site
Bramhill added: "The company, during 2019 and to date, has advanced its key projects, and seen drilling and appraisal activity, supported by technical research input from our very competent technical team, resulting in an accretion in asset value and providing clarity on the next steps towards commerciality.
"I have no doubt that, even in these difficult times, given our attractive projects, we will achieve our goal of increasing production materially and becoming a significant mid-tier UK onshore producer in the medium term.”
He concluded: “Union Jack's wider asset portfolio is well balanced with the relevant components of production, development, appraisal and discovery and we are fully funded for all our planned commitments going forward. The future of Union Jack remains bright.”
Presently, the company is looking forward to the testing of the West Newton A-2 well, which hit a 45 metre oil column, and, preparations are underway to advance to the drilling of a third West Newton well.
In the second half of 2020, the company anticipates the start-up of the Wressle oil field.
During the twelve months ended December 31, 2019, the company generated US$136,959 of revenue, for a £80,639 gross loss, and, a £1.7mln operating loss. It reported a loss before tax of £1.69mln, including £1.34mln of admin costs and a £112,500 write of to exploration assets.