Union Jack Oil PLC reported a surge in annual revenue on Monday as the company posted its maiden profit for oil sales on the strength of its Wressle well.

In 2021, the UK-focused oil and gas company significantly narrowed its pretax loss to £853,013 from a loss of £1.9 million the previous year.

Revenue leaped to £1.9 million from just £158,004 in 2020. This comes as the company achieved its maiden gross profit on oil sales in the year.

To date during 2022, net revenue totals £2.9 million, comfortably exceeding the revenues for 2021.

Union Jack Oil explained that its Wressle well had exceeded pre-production expectations of 500 barrels of oil per day and continues to outperform since the resumption of production following a successful proppant-squeeze and coiled-tubing operation during August.

Further, an independent RPS Group review at a horizontally drilled well at West Newton predicts initial average production rates of up to 35.6 million cubic feet of gas and 1,000 barrels of oil per day.

Chair David Bramhill said: ‘During 2021 and to date, the company has advanced a number of its key projects, especially at Wressle which, as stated earlier, have been transformational financially with substantial revenues and indications that the Wressle journey has only just commenced.

‘The latest results at West Newton are highly encouraging regarding the prospects of the significant hydrocarbon discoveries made to date and their development potential, following an extensive testing and investigative programme conducted on both sides of the Atlantic by industry leading geological and geochemical consultancies.’

Looking forward, the company said its outlook is ‘highly positive’ on the strength of its 2021 results.

The company did not declare a dividend, unchanged from the previous year.

Shares in Union Jack Oil were down 1.9% at 26.00 pence on Monday in London.

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