UK oil company in "strong financial position" despite £1.7m loss

A UK oil company has reported a loss of more than £1.7m for 2019.

Union Jack Oil said this morning that it saw a loss of £1,724,595 last year, an increase of £626k from 2018’s £1,098,708.

The company’s revenue for the year also decreased, falling from £165k in 2018 to £136k in 2019.

However, the firm maintains that it is in a “strong” position with no debt and a cash balance of £5.5m, largely due to a placing of £5m before expenses in November 2019.

David Bramhill, executive chairman of Union Jack Oil, commented: “My confidence in respect of Union Jack’s future remains highly positive.

“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.

“In the meantime, I am certain that the news stream arising from the ongoing progress of our endeavours will vindicate our optimism in respect of our licence interests.

“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.”