TIDMUJO
RNS Number : 9389L
Union Jack Oil PLC
11 September 2023
This announcement contains inside information for the purposes
of Article 7 of the Market Abuse Regulation (EU) 596/2014 as it
forms part of UK domestic law by virtue of the European Union
(Withdrawal) Act 2018 ("MAR"), and is disclosed in accordance with
the Company's obligations under Article 17 of MAR.
11 September 2023
UNION JACK OIL PLC
(AIM: UJO)
Unaudited Results for the Six Months Ended 30 June 2023
Union Jack Oil plc ("Union Jack" or the "Company"), a UK focused
onshore conventional oil and gas production, development and
exploration company, is pleased to announce its unaudited results
for the Half Year ended 30 June 2023.
FINANCIAL AND OPERATIONAL HIGHLIGHTS
-- For the six-month period ended 30 June 2023:
o Gross Profit of GBP1,608,973
o Net Profit of GBP572,263
o Revenue of GBP3,584,866
-- Cash balances, receivables and liquid investments stand in excess of GBP9,250,000 as at
8 September 2023
-- Robust Balance Sheet, cash generative and debt free
-- All current projects funded for at least the next 12 months
without recourse to Capital Markets
-- Wressle is amongst the most productive conventional producing
UK onshore oilfields with nearly 500,000 barrels of high-quality
oil having been produced from the Ashover Grit formation alone
-- Wells planned for Keddington, Wressle and West Newton
-- Ongoing evaluation of new projects offering short-term
cash-flow, rapid payback and accretive value
David Bramhill, Executive Chairman, commented: "I am very
pleased to be again, able to present to the shareholders of Union
Jack, a positive set of Half Yearly results, containing several
highlights of note, including a sustained profit, a strong cash
position and a robust Balance Sheet free of debt.
"These results reflect the determined effort by the Board of
Directors, advisers and technical consultants, all who share the
same objective to grow the Company with minimal dilution in the
future.
"Union Jack remains in a strong financial position with a
combination of consistent cash flows, principally from our flagship
asset at Wressle, plus significant future upside potential from our
balanced portfolio, giving Union Jack the confidence to support a
forward drilling and development programme on our key projects that
is being planned for the remainder of 2023 and beyond.
"Union Jack continues to be cash flow positive, covering all
current G&A, OPEX and contracted or planned CAPEX costs,
including any drilling activities for at least the next 12 months,
without recourse to the Capital Markets.
"The future of Union Jack remains bright."
For further information please contact the following:
Union Jack Oil plc info@unionjackoil.com
David Bramhill
SP Angel Corporate Finance
LLP +44 (0)20 3470 0470
Nominated Adviser and Broker
Matthew Johnson
Richard Hail
Kasia Brzozowska
Shore Capital
Joint Broker
Toby Gibbs
Iain Sexton +44 (0)20 7408 4090
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 Graham Bull, Non-Executive
Director, who has over 47 years of international oil and gas
industry exploration experience. 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.
Evaluation of hydrocarbon volumes has been assessed in
accordance with 2018 Petroleum Resources Management System (PRMS)
prepared by the Oil and Gas Reserves Committee of the Society of
Petroleum Engineers (SPE) and reviewed and jointly sponsored by the
World Petroleum Council (WPC), the American Association of
Petroleum Geologists (AAPG), the Society of Petroleum Evaluation
Engineers (SPEE), the Society of Exploration Geophysicists (SEG),
the Society of Petrophysicists and Well Log Analysts (SPWLA) and
the European Association of Geoscientists & Engineers
(EAGE).
CHAIRMAN'S STATEMENT
I am pleased to present this Half Yearly Report for the six
months ended 30 June 2023 to the shareholders of the Company.
OPERATIONAL AND FINANCIAL HIGHLIGHTS
-- Gross profit of GBP1,608,973 for the six-month period ended 30 June 2023
-- Net profit of GBP572,263 for the six-month period ended 30 June 2023
-- Revenue of GBP3,584,866 for the six-month period ended 30 June 2023
-- Cash balances, receivables and liquid investments stand in excess of GBP9,250,000 as at
8 September 2023
-- Robust Balance Sheet, cash generative and debt free
-- Wressle is amongst the most productive conventional producing
UK onshore oilfields with nearly 500,000 barrels of high-quality
oil having been produced from the Ashover Grit formation alone
-- Wells planned for Keddington, Wressle and West Newton
-- Ongoing evaluation of new projects offering short-term
cash-flow, rapid payback and accretive to value
FINANCIAL AND OPERATIONAL OVERVIEW
Union Jack has made good progress during 2023 which can be seen
in the Half Yearly results ended 30 June 2023 (the "Period"), with
a net profit posted of GBP572,263 (H1 2022: GBP2,034,086).
A Gross Profit of GBP1,608,973 (H1 2022: GBP2,833,629) was
posted for the Period.
Revenues for the Period were GBP3,584,866 (H1 2022:
GBP4,384,254).
The average oil price received for the Period was USD80 (H1
2022: USD104).
Foreign exchange movements had a negative effect on revenues
with the firming of the GBP versus the USD conversion rate.
Contributions from our flagship project Wressle, supplemented by
revenues from the Keddington oilfield, have enabled the Company to
sustain and support an extremely robust Balance Sheet, with cash,
near term receivables and investments currently standing in-excess
of GBP9,250,000 and to remain debt free. The majority of long-term
cash is held in a competitive, interest bearing account, without
risk to funds.
The Company is fully funded for all G&A, OPEX and planned
CAPEX costs, including any budgeted drilling activities for at
least the next 12 months without recourse to the Capital
Markets.
Since the commencement of the dividend and share buy-back
programme during September 2022 to date, the Company has returned
over GBP2,995,000 to shareholders. The dividend policy remains as
previously stated and the intention is to continue these payments,
based on the proportion of free cash available, subject to our
project obligations being fulfilled.
Union Jack's selective investment portfolio during the period
has generated significant returns, well over 100% of our original
investment from the sale of the Claymore Area Royalty Agreement in
May 2023 and a return of 194% on our investment in Egdon Resources
plc, as a result of the recent agreed take over by Petrichor
Partners LLP.
Operationally, good progress has been made at Wressle where the
Joint Venture partners have agreed a budget and drilling programme,
targeting the Penistone Flags formation for 2024. Pre-application
planning advice has been sought from North Lincolnshire Council for
review and a decision has been made on a sales route for the gas
produced. A planning application is in preparation along with the
associated supporting studies and reports.
Agreement has been reached between the partners to drill a
side-track well at the earliest opportunity at Keddington, for
which planning consent is already in place. A final well trajectory
has been decided upon and procurement of the rig, materials and
services is progressing. The well, if successful, will add
considerably to production.
West Newton, located in an area that provides excellent regional
infrastructure and substantial technically recoverable resources,
awaits the drilling of a 1,500 metre horizontal well, where
planning has been approved, whilst corporate activity regarding our
Joint Venture partners continues with third party discussions
regarding future drilling and possible development
partnerships.
Additional information on our leading projects at Wressle, West
Newton, Keddington and other licence interests can be found later
within this statement.
Union Jack remains committed to promoting and investing in the
conventional UK onshore oil sector. The opinion of the Board is
that several "rich pickings" remain which could be transformed into
substantive discoveries over the coming years. However, the rate of
progress can only be described as painfully slow due to the wider
UK regulatory process that neither the Company nor its Joint
Venture partners have the ability to influence. Onshore UK will
remain the prime driver for Union Jack and we are confident that
our flagship project Wressle, will continue to deliver as the
future development plans indicate.
Union Jack's very able technical team continue to screen and
investigate the impressive upside that we believe is contained
within our existing projects and we will continue to invest and
agree to capital expenditure budgets to advance them. However, over
the past year we have considered the potential UK political
environment and the possible impacts on Union Jack's business
development over the coming years.
To mitigate future risk, the Board believes it is compelled
strategically to seek growth opportunities further afield in
politically safe regimes and with sympathetic views toward the oil
industry, without compromising the world's environmental objectives
and the aim of a Net Zero target by 2050.
Over the past six months we have appointed a team of specialists
who are able to provide a bespoke service in generating potential
value adding projects for review and consideration. We are seeking
projects that will be self-funding in the short term, without
placing undue strain on our strong Balance Sheet, allowing us to
remain focused on the onshore UK as our core area of investment. We
look forward to updating the market as this search progresses.
PEDL180 AND PEDL182 WRESSLE OILFIELD DEVELOPMENT (40%)
Wressle is located in Lincolnshire on the Western Margin of the
Humber Basin.
The Wressle-1 well discovery was defined on proprietary 3-D
seismic data. The structure is on trend with the producing Crosby
Warren oilfield and the Broughton B-1 oil discovery, both to the
immediate northwest, and the Brigg-1 discovery to the southeast.
All these wells contain oil in various different sandstone
reservoirs within the Upper Carboniferous succession.
Since the resumption of production during August 2021, following
the successful proppant-squeeze and coiled tubing operation,
Wressle-1 has produced nearly 500,000 barrels of oil from the
Ashover Grit formation.
Since late June 2023, limited amounts of water have been
observed with water cut averaging approximately 3.72% of total
field production. This figure has remained constant throughout July
and August 2023.
The Operator has planned for this event and a simple clean water
disposal plan is in place which is an inexpensive exercise for the
Joint Venture partners.
The start of modest water production is significantly later than
originally anticipated, providing further evidence that the
expected recoverable volumes from the Ashover Grit are likely to be
at the higher estimates detailed in the independent Competent
Person's Report ("CPR") prepared by ERCE during 2016. The 2016 CPR
forecast gross volumes from the Ashover Grit of 2P 0.54 MMstb and
3P 1.12 MMstb.
The planned maintenance shutdown scheduled for early 2024, where
artificial lift equipment capable of pumping in excess of 1,000
barrels of fluid per day was to be installed along with other site
upgrades, has been brought forward and the fitting of a downhole
jet pump is currently being completed, along with the siting of
other surface equipment. This exercise is a natural sequence in the
life-cycle of an oil well and offers a reliable method of ensuring
the continued operation and the optimisation of its future
production performance.
Environmental monitoring throughout the Wressle operation has
shown no measurable impact on surface or groundwater quality, no
related seismicity and that operational noise levels have been
contained within permitted ranges.
Evaluations are continuing in order to deliver a full Field
Development Plan that will maximise hydrocarbon recoveries from the
Ashover Grit, Wingfield Flags, Penistone Flags and other associated
prospects.
WEST NEWTON APPRAISAL PEDL183 (16.665%)
PEDL183 is located onshore UK, north of the River Humber,
encompassing the town of Beverley, East Yorkshire. The licence area
is within the western sector of the Southern Zechstein Basin.
Union Jack entered into a farm-in during 2018 with Rathlin
Energy (UK) Limited ("Rathlin") the Operator, and since that time
the West Newton A-2 ("WNA-2") and West Newton B -1Z ("WNB-1Z")
drilling programmes have yielded substantial hydrocarbon
discoveries within the Kirkham Abbey formation.
Throughout 2022, data collected during drilling operations and
well testing, which included core, oil and gas samples, wireline
log and well test records were analysed by independent laboratories
CoreLab, Applied Petroleum Technology ("APT") and RPS Group Limited
("RPS"). The results of these analyses, in conjunction with
internal evaluations, have been invaluable in informing the
upcoming programme of work and future drilling plans.
The laboratory reports confirm that the hydrocarbon-bearing
Kirkham Abbey reservoir is extremely sensitive to aqueous fluids
and that previous drilling of the West Newton wells with
water-based mud had created near well-bore damage through the
creation of very fine rock fragments, affecting the natural
porosity and permeability of the formation which had a detrimental
effect on its ability to flow. Further analyses have determined
that the use of dilute water-based acids during well testing would
have also affected the flow characteristics of the Kirkham Abbey
reservoir.
These tests indicate that by drilling the Kirkham Abbey
reservoir with an oil-based drilling fluid, damage to the oil and
gas reservoir should be minimised.
The Operator, Rathlin, has made applications to the Environment
Agency ("EA") for use of oil-based drilling fluids within the
hydrocarbon bearing Permian section for both the West Newton A and
B sites.
Analyses by APT of numerous oil and gas samples recovered from
the West Newton wells during testing, along with evaluation of mud
gases measured during drilling utilising a proprietary software
package, indicates that the Kirkham Abbey reservoir is
predominantly gas (primarily methane 90% plus ethane 5%) with
associated light condensate.
RPS has modelled wells extending up to 1,500 metres horizontally
through the Kirkham Abbey reservoir. These wells have a much
greater likelihood of encountering significant sections of the
naturally fractured reservoir, enhancing its productive
capability.
In preparation for a decision on the potential development of
the West Newton discoveries, the Operator submitted revised
planning applications for the development of West Newton to the
ERYC. This was approved by the ERYC Planning Committee by a vote of
ten to one during March 2022.
A revised CPR was compiled by RPS during 2022, evaluating the
resources of PEDL183 as of 30 June 2022, ("Effective Date").
The results of the 2022 CPR were very encouraging,
highlighting:
-- Kirkham Abbey Best Case Gross Unrisked Contingent Technically
Recoverable Sales Gas is estimated to be 197.6 billion cubic feet
("bcf")
-- Geological Chance of Success of Kirkham Abbey horizontal well estimated to be 85.5%
-- Gross NPV10 risked value of Kirkham Abbey Contingent Gas
Resource as at Effective Date of USD396.1 million post tax
-- Substantial additional Prospective Resource figures for
Ellerby, Spring Hill and Withernsea prospects
In the preparation of the 2022 CPR, RPS adopted the Petroleum
Resource Management System ("PRMS") standard.
WEST NEWTON GROSS UNRISKED TECHNICALLY RECOVERABLE SALES
Category Gross Technically Recoverable
Gas Liquids
(bcf) (mbbl)
-------------- ----------------
1C 99.7 299.4
-------------- ----------------
2C 197.6 593.0
-------------- ----------------
3C 393.0 1,178.9
-------------- ----------------
Note: Net data for Union Jack can be calculated by applying its
16.665% economic interest to the above gross data.
WEST NEWTON GEOLOGICAL CHANCE OF SUCCESS
Asset Source Charge Migration Reservoir Trap Seal Geological
Rock COS
West Newton 1.00 1.00 1.00 0.90 0.95 1.00 0.855
------- ------- ---------- ---------- ----- ----- -----------
A future West Newton development will benefit from being located
in an area that provides access to substantial regional
infrastructure and could deliver significant volumes of onshore
low-carbon sales gas into the UK's energy market.
Domestically produced natural gas is, and will remain, a
much-needed part of the energy mix as the UK seeks to reduce its
reliance on imported products.
Union Jack looks forward to the drilling of a 1,500 metre
horizontal well at the earliest opportunity and unlocking the
significant potential of the Greater West Newton project.
PEDL253 BISCATHORPE (45%)
PEDL 253 is situated within the proven hydrocarbon fairway of
the South Humber Basin and is on-trend with the Keddington oilfield
and the Saltfleetby gasfield.
While drilling the Biscathorpe-2 well, there were hydrocarbon
shows, elevated gas readings and sample fluorescence observed over
the entire interval from the top of the Dinantian to the Total
Depth of the well, with 68 metres being interpreted as being
oil-bearing.
Independent consultants APT also conducted analyses, confirming
a hydrocarbon column of 33-34 API gravity oil, comparable with the
oil produced at the nearby Keddington oilfield.
Further evaluation of the results of the Biscathorpe-2 well,
together with the reprocessing of 264 square kilometres of 3D
seismic, indicate a material and potentially commercially viable
hydrocarbon resource remaining to be appraised.
Subject to a favourable planning appeal decision a side-track
well is planned, targeting the Dinantian Carbonate where the
Operator has assessed, in accordance with the PRMS Standard, a
gross Mean Prospective Resource of 2.55 MMbbl. The overlying Basal
Westphalian Sandstone has the potential to add gross Mean
Prospective Resources of 3.95 MMbbl. Economic modelling
demonstrates that the Westphalian target is economically robust,
especially in the current oil price environment. Commercial
screening indicates break-even full cycle economics to be USD18.07
per barrel.
During November 2021, a planning application for a side-track
drilling operation, associated testing and long-term production was
refused by the Lincolnshire County Council Planning Committee,
despite being recommended for approval by the planning
officers.
The Joint Venture partners are awaiting a decision from the
Planning Inspectorate, where an appeal was heard in October
2022.
Union Jack's technical team believe that Biscathorpe remains one
of the largest unappraised conventional onshore discoveries within
the UK.
PEDL005(R) KEDDINGTON (55%)
The producing Keddington oilfield is located along the highly
prospective East Barkwith Ridge, an east-west structural high on
the southern margin of the Humber Basin.
A subsurface review conducted by the Operator has highlighted a
viable target to the east of the field, with up to 180,000 barrels
of incremental production.
Modelling indicates that infill drilling is forecast to improve
recovery from the Keddington field by between 113,000 to 183,000
barrels of oil. With planning permission already in place,
Keddington presents an excellent opportunity to increase oil
production relatively inexpensively.
The Keddington 3-D seismic has been re-processed and a well
trajectory agreed between the Joint Venture partners. The
procurement of the rig, materials and services is progressing and
the drilling of a side-track well is expected to take place at the
earliest opportunity.
PEDL241 NORTH KELSEY (50%)
North Kelsey is a conventional oil exploration prospect, on
trend with and analogous to the Wressle oilfield which lies
approximately 15 kilometres to the northwest. The prospect has been
mapped from 3-D seismic data and has the potential for oil in four
stacked Upper Carboniferous reservoir targets.
The Operator estimates that gross Prospective Resources range
from 4.66 to 8.47 MMbo.
During August 2022, the Operator submitted an appeal on behalf
of the Joint Venture, against the refusal of an extension of time
to the existing planning permission by Lincolnshire County Council
for the drilling and testing of a conventional exploration well at
the North Kelsey site.
Subsequent to this event, Union Jack was informed by the
Operator that it has withdrawn the planning appeal outlined
above.
A new application will be submitted at a later date following
consultation with the local community.
NET ZERO CARBON POLICY
The UK is committed by law to reach Net Zero carbon emissions by
2050. Union Jack pursues a strategy whereby it is not the Operator
of any of its projects. Therefore, the Company will only work with
Operators who have a firm commitment to safety, environmental and
social responsibility in all aspects of their operations.
Regardless of the fact that the Company has chosen not to be an
Operator, we are subject to the same scrutiny as any other
hydrocarbon producer.
We remain pro-active in the quest for Net Zero and Union Jack's
focus is to minimise emissions and the carbon footprint generated
by its hydrocarbon interests in the most efficient means possible,
whilst continuing to contribute positively to the growing demand
for energy and hydrocarbon products in the supply chain.
As the demand for energy increases as the global economy
recovers, hydrocarbons will continue to play an important role in
ensuring the energy security of the UK.
Union Jack's development interests are located close to areas
with a high demand for energy and as a consequence management
believes that locally produced hydrocarbons provide the benefit of
displacing, to some extent, imported hydrocarbons.
OUTLOOK
I am very pleased again to be able to present to the
shareholders of Union Jack a positive set of Half Yearly results,
containing several highlights of note, including a sustained
profit, a strong cash position and a robust Balance Sheet free of
debt, reflecting the determined effort and perseverance by the
Board of Directors, advisers and valued technical consultants with
an unwavering objective to grow the Company going forward with
minimal dilution in the future.
Union Jack remains in a strong financial position with a
combination of consistent cash flows, principally from our flagship
asset at Wressle, plus significant future upside potential from our
balanced project portfolio.
Union Jack continues to be cash flow positive covering all
G&A, OPEX and contracted or planned CAPEX costs, including any
drilling activities for at least the next 12 months without
recourse to Capital Markets.
I would like to take this opportunity to thank our shareholders
for their continued support and I look forward to the remainder of
2023 and beyond, reporting on a number of fronts, in particular on
our potential new ventures.
The future of Union Jack remains bright.
David Bramhill
Executive Chairman
11 September 2023
Unaudited income Statement
FOR THE SIX MONTHSED 30 JUNE 2023
Year
Six Months Six Months ended
ended ended 31 December
30 June 30 June 2022
2023 Unaudited 2022 Unaudited Audited
Notes GBP GBP GBP
================================ ====== ================ ================ ================
Revenue 3,584,866 4,384,254 8,507,050
Cost of sales - operating (527,425) (514,824)
costs (1,297,439) (1,035,801) (1,143,967)
Cost of Sales - depreciation (151,029) - (2,125,425)
Cost of sales - Net Profit
Interest payment (137,179)
Gross profit 1,608,973 2,833,629 5,100,479
-------------------------------- ------ ---------------- ---------------- ----------------
Administrative expenses (925,077) (789,007) (1,665,174)
Impairment (30,201) - (475,556)
Total administrative
expenses (955,278) (789,007) (2,140,730)
-------------------------------- ------ ---------------- ---------------- ----------------
653,695
Operating profit 42,231 2,044,622 2,959,749
Finance income 70,000 52,222 86,586 42,444
Other income 42,023
-------------------------------- ------ ---------------- ---------------- ----------------
Profit before taxation 3 765,926 2,138,867 3,088,779
Taxation- (193,663) (104,781) 517,845
-------------------------------- ------ ---------------- ---------------- ----------------
Profit for the period
/ year 572,263 2,034,086 3,606,624
-------------------------------- ------ ---------------- ---------------- ----------------
Attributable to:
Equity shareholders of
the Company 572,263 2,034,086 3,606,624
-------------------------------- ------ ---------------- ---------------- ----------------
- -
Earnings per share
Basic (pence) 2 0.52 1.80 3.20
Diluted (pence) 2 0.51 1.78 3.16
-------------------------------- ------ ---------------- ---------------- ----------------
Unaudited Statement of Comprehensive Income
FOR THE SIX MONTHSED 30 JUNE 2023
Year
Six Months Six Months ended
ended ended 31 December
30 June 30 June 2022
2023 Unaudited 2022 Unaudited Audited
GBP GBP GBP
============================= ================ ================ =============
Profit for the period
/ year 572,263 2,034,086 3,606,624
Items which will not
be reclassified
subsequently to profit
Profit on investment
revaluation 267,727 371,230 170,500
------------------------------ ---------------- ---------------- -------------
Total comprehensive profit
for the period / year 839,990 2,405,316 3,777,124
------------------------------ ---------------- ---------------- -------------
Unaudited Balance Sheet
AS AT 30 JUNE 2023
As at
As at As at 31 December
30 June 30 June 2022
2023 Unaudited 2022 Unaudited Audited
Notes GBP GBP GBP
================================= ====== ================ ================ =============
Assets
Non-current assets
Exploration and evaluation
assets 8,866,419 9,134,006
Property, plant and equipment 9,312,335 6,779,563 5,666,212
Investments 4,688,927 662,748 552,043
937,783
Deferred tax asset 1,849,928 - 1,805,025
--------------------------------- ------ ---------------- ---------------- -------------
16,788,973 16,308,730 17,157,286
Current assets
Inventory 27,622 19,246 28,038
Trade and other receivables 2,674,289 2,124,110 2,020,913
Cash and cash equivalents 6,280,609 6,503,962 7,155,100
--------------------------------- ------ ---------------- ---------------- -------------
8,982,520 8,647,318 9,204,051
--------------------------------- ------ ---------------- ---------------- -------------
Total assets 25,771,493 24,956,048 26,361,337
--------------------------------- ------ ---------------- ---------------- -------------
Liabilities
Current liabilities
Trade and other payables 1,104,700 383,561 778,290
--------------------------------- ------ ---------------- ---------------- -------------
Non-current liabilities
Provisions 1,717,206 1,867,061 1,700,069
Deferred tax liability 638,219 - 877,747
--------------------------------- ------ ---------------- ---------------- -------------
Total liabilities 3,460,125 2,250,622 3,356,106
--------------------------------- ------ ---------------- ---------------- -------------
Net assets 22,311,368 22,705,426 23,005,231
--------------------------------- ------ ---------------- ---------------- -------------
Capital and reserves
attributable
to the Company's equity
shareholders
Share capital 7,514,576 7,507,076 7,514,576
Share premium - 21,528,077 -
Share-based payment reserve 712,634 733,350 712,634
Treasury reserve (1,748,079) - (214,227)
Accumulated profit /
(deficit) 4 15,832,237 (7,063,077) 14,992,248
--------------------------------- ------ ---------------- ---------------- -------------
Total equity 22,311,368 22,705,426 23,005,231
--------------------------------- ------ ---------------- ---------------- -------------
Unaudited Statement of Cash Flows
FOR THE SIX MONTHSED 30 JUNE 2023
Six months Six months Year
ended ended ended
30 June 2023 30 June 31 December
Unaudited 2022 Unaudited 2022
GBP GBP Audited
GBP
=============================== ============== ================ ===============
Cash outflow from operating
activities 2,178,691 1,006,040 5,811,734
------------------------------- -------------- ---------------- ---------------
Cash flow from investing
activities
Purchase of intangible
assets
Purchase of property, (304,596)
plant and equipment (366,224) (330,375) (712,935)
Disposal of assets 227,272 (197,599) (2,852,254)
Fixed term deposit (1,000,000) - -
Loan advanced - (1,000,000) (1,000,000)
Loan capital returned - - 1,000,000 (1,000,000)
Purchase of investments (118,013) - 2,000,000
Sale of investments - - (100,000)
Interest received 42,231 48,355 6,772 105,996
------------------------------- -------------- ---------------- ---------------
Net cash used in investing
activities (1,519,330) (479,619) (3,552,421)
------------------------------- -------------- ---------------- ---------------
Cash flow from financing
activities - - 33,000
Proceeds on issue of
new shares - - - (900,527)
Dividends paid (1,533,852) (214,227)
Treasury shares
------------------------------- -------------- ---------------- ---------------
Net cash generated from
financing activities (1,533,852) - (1,081,754)
------------------------------- -------------- ---------------- ---------------
Net (decrease) / increase
in
cash and cash equivalents (874,491) 526,421 1,177,559
------------------------------- -------------- ---------------- ---------------
Cash and cash equivalents
at beginning of period
/ year 7,155,100 5,977,541 5,977,541
------------------------------- -------------- ---------------- ---------------
Cash and cash equivalents
at end of period / year 6,280,609 6,503,962 7,155,100
------------------------------- -------------- ---------------- ---------------
Notes to the Unaudited Financial Information
FOR THE SIX MONTHSED 30 JUNE 2023
1 Accounting Policies
Basis of Preparation
These financial statements are for the six-month period ended 30
June 2023.
The information for the year ended 31 December 2022 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 2023 are unaudited.
The interim financial information in this report has been
prepared in accordance with International Financial Reporting
Standards ("IFRS") 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 2022.
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 and continue to adopt the going concern basis of
accounting.
2 Profit per Share Attributable to the Equity Shareholders of the Company
Basic profit per share is calculated by dividing the earnings
attributable to ordinary shareholders by the weighted average
number of ordinary shares outstanding during the period.
In the periods prior to 30 June 2022, the share options in issue
were excluded as their inclusion would have been anti-dilutive.
Where the calculated average share price was lower than the
exercise price of share options in issue, these potential ordinary
shares have not been included for the purposes of calculating the
diluted profit per share.
Basic profit per share Six months Six months Year
ended ended ended
30 June 30 June 31 December
2023 2022 2022
pence pence pence
======================== ============ ============ =============
Profit per share from 0.52 1.80 3.20
continuing operations
- Basic 0.51 1.78 3.16
- Diluted
------------------------ ------------ ------------ -------------
The profit 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 2022 2022
2023 GBP GBP
GBP
================================= ============== ============== ==============
Profit used in the calculation
of total
basic and diluted earnings
per share 572,263 2,034,086 3,606,624
--------------------------------- -------------- -------------- --------------
Six months Year
Number of Shares ended Six months ended
30 June ended 31 December
2023 30 June 2022
2022
================================= ============== ============== ==============
Weighted average number
of ordinary
shares for the purposes
of basic and
diluted earnings per share
- Basic 110,000,979 112,715,896 112,706,307
- Diluted 111,350,979 114,215,896 114,132,334
--------------------------------- -------------- -------------- --------------
Treasury Shares
As at 30 June 2023, the Company held 6,300,000 of its ordinary
shares in treasury. These shares are not included in the earnings
per share calculation. There are no current plans to cancel these
shares.
3 Taxation
Consistent with the year-end treatment, current and deferred tax
assets and liabilities have been calculated at tax rates which were
expected to apply to their respective period of realisation at the
period end. The Energy Profits Levy for the year 2023 has been
increased to 35% and the CAPEX relief decreased to 129%. OPEX
relief remains at 100%.
4 Share Capital
At 30 June 2023, there were 112,865,896 ordinary shares of a
nominal value of 5 pence in issue.
At 30 June 2023, there were 831,680,400 deferred shares of 0.225
pence nominal value in issue.
5 Events after the Balance Sheet Date
On 28 July 2023, a dividend of 0.3 pence per ordinary share of
Union Jack was paid to shareholders. Treasury Shares held by the
Company did not qualify for this dividend.
6 Related Party Transactions
Charnia Resources (UK), an unincorporated entity owned by Graham
Bull, non-executive director, received from the Company the sum of
GBP60,187 during the period under review in respect of consulting
fees. GBP12,011 was outstanding at the end of the period.
Jayne Bramhill, spouse of David Bramhill, received from the
Company the sum of GBP6,000 during the period under review in
respect of IT maintenance and administration costs.
On 19 June 2023, Joseph O'Farrell, Executive Director purchased
a total of 133,400 ordinary shares of 5 pence each in Union Jack,
at a weighted average price of 31.25 pence each.
7 Copies of the Half Yearly Report
A copy of the Half Yearly Report is now available on the
Company's website www.unionjackoil.com.
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END
IR GZGMLZGDGFZZ
(END) Dow Jones Newswires
September 11, 2023 02:00 ET (06:00 GMT)
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