Union Jack Oil shares dip despite upbeat outlook

23rd Sep 2024 07:49

(Sharecast News) - Shares in Union Jack Oil were trading lower on Monday despite the UK and US-focused energy producer hailing a "solid and profitable" first half and delivering an optimistic outlook.

The company reported a net profit of £0.8m for the six months to 30 June, despite oil revenues slipping to £2.4m from £3.6m a year earlier.

The company's flagship project, Wressle, in the UK saw average production of 188,000 barrels per day during the period for the company.

UJO, which made its first entry into the US market during the period, said it had a successful early drilling campaign with Oklahoma-based Reach Oil, resulting in the discovery of the Andrews field in which it owns 45%.

Chair David Bramhill said Oklahoma is the "scene of our rapid growth strategy", with income already realised from the Andrews field and the start of a three well drilling campaign planned for the fourth quarter.

"Union Jack's success in the USA, from a standing start in early 2024, highlights the ease of entry and ability to execute business there, justifying the board's decision to seek further growth opportunities internationally to bolster the Company's flagship production and appraisal assets in the UK," he said.

"The board's confidence in Union Jack's continued growth is evidenced by the company's solid and profitable 2024 Half Yearly financial results, confirming its resilience, both financially and operationally," Bramhill said.

Despite the positive comments, the stock was down 7.5% AT 14.34P BY 1426 BST.