Union Jack Oil plc’s (AIM: UJO) executive chair David Bramhill has said controversially that the “most productive phase” of the Wressle oil field, which had planning permission for an extension rescinded last month on the basis of the project’s anticipated emissions, still lies ahead.
In its latest update to the market, the publicly listed company remained bullish on the oil field asset, despite revealing earlier this month that planning permission for the expansion of the oil field had “been formally rescinded”.
“In the UK, the company is pleased to report cumulative revenues of over US$22,000,000 from Wressle, net to its 40% interest, where the view of the management is that the most productive phase of development lies ahead,” David Bramhill, executive chairman of Union Jack, said in a statement.
Planning for an extension at the Wressle oil well, which was initially granted in September 2023, was revoked on the basis that North Lincolnshire Council had failed to consider the likely greenhouse gas emissions from the project in its environmental impact assessment.
The Wressle extension was one of the first oil developments to have planning permission removed following the Finch ruling in June that decided Surrey County Council had similarly ignored downstream emissions when granting planning permission for the Horse Hill oil project near Gatwick Airport.
Planning permission was overturned in both cases due to the courts’ assessment of the impact of so-called ‘scope three’ emissions, the category of emissions in the greenhouse gas protocol that covers the entire value chain. This category includes the end customer emissions from combusting petrol.
Union Jack Oil, which holds a 40% stake in the Wressle project, said earlier this month that the project’s operator Edgon Resources UK would have to request a new planning opinion and provide North Lincolnshire Council with an analysis of ‘scope three’ greenhouse gas emission as a result of the ruling.
“Depending on the outcome of this decision, a new determination of the Wressle planning application will be made based on either the existing submitted information or with the requirement for a new environmental statement,” the AIM-listed company said.
“This decision has no effect on the existing planning consent at Wressle and production and operations continue with no detriment to Union Jack and its partners.”
Stockbroker Shore Capital, which counts Union Jack Oil as a house stock, said in a broker note that “the Wressle field continues to generate cash flow”, updating its net asset value estimate for the company following drilling at an oil well in Oklahoma.
The broker said: “Our 35p/share risked Total NAV for Union Jack includes c.2p/share for the Taylor well.”
Union Jack Oil’s share price was up 10.26% today at 10.75p per share.
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