Union Jack Oil plc
Climate Impact & Sustainability Data (2021, 2023)
Reporting Period: 2021
Environmental Metrics
Carbon Intensity:AA rating for Biscathorpe and West Newton (Gaffney Cline).
ESG Focus Areas
- Climate Change
- Environmental Responsibility
- Safety
- Community Relations
Environmental Achievements
- Commissioned Gaffney Cline for Carbon Intensity studies on Biscathorpe and West Newton, both achieving an AA rating.
- Environmental monitoring at Wressle showed no measurable impact on surface or groundwater quality, no related seismicity, and noise within permitted levels.
Social Achievements
- Locally produced hydrocarbons displace imported hydrocarbons, contributing to local employment and tax revenues.
- Commitment to highest standards of health, safety, and environmental protection.
Governance Achievements
- Adopted QCA Corporate Governance Code 2018.
- Established Audit and Remuneration Committees.
Climate Goals & Targets
Long-term Goals:
- Build a safe, sustainable and successful conventional onshore hydrocarbon exploration, development and production business.
Short-term Goals:
- Completion of installation of permanent production facilities at Wressle.
- Implementation of gas to grid development at Wressle.
- Advancement of development plan and consenting process for Penistone Flags reservoirs at Wressle.
Environmental Challenges
- Planning application refusal at Biscathorpe (appealed).
- Planning application refusal for PEDL241 extension (appeal considered).
- Oil and gas price volatility.
- Reliance on third-party operators.
Mitigation Strategies
- Appointment of specialist professional entities for planning applications.
- Transparent operating protocol with JOA partners.
- Regular technical meetings with in-house and external consultants.
- Adequate Directors’ Insurance and Operator’s insurance during operations.
- Focus on cashflow positive assets with a breakeven oil price of approximately US$18.
Supply Chain Management
Climate-Related Risks & Opportunities
Reporting Standards
Frameworks Used: PRMS (Petroleum Resources Management System)
Reporting Period: 2023
Environmental Metrics
ESG Focus Areas
- Climate Change
- Safety
- Community Investment
Environmental Achievements
- Improved carbon management practices through partnerships with operators committed to Net Zero emissions by 2050, with at least a 25% reduction by 2025.
- Ongoing commitment to safety and environmental protection in operations.
Social Achievements
- Generated revenues in excess of US$19,000,000 net to Union Jack before taxes from Wressle, supporting local employment and tax revenues.
- Declared a dividend of 0.25 pence per ordinary share (payable July 26, 2024) demonstrating commitment to shareholder returns.
Governance Achievements
- Appointment of Craig Howie as an independent non-executive director, strengthening board expertise and oversight.
- Adoption of the Quoted Companies Alliance Corporate Governance Code.
Climate Goals & Targets
Long-term Goals:
- Alignment with operators committed to Net Zero emissions by 2050.
Medium-term Goals:
- Further expansion of activities in the USA.
Short-term Goals:
- Ambitious near-term appraisal and development programs planned for Wressle.
Environmental Challenges
- Lower oil prices and weaker exchange rates compared to 2022.
- Near three-month shutdown at Wressle for upgrades.
- Punitive Energy Profit Levy of 35% imposed on profits generated within the UK.
Mitigation Strategies
- Successful operation of Wressle despite challenges, demonstrating project durability.
- Expansion into the USA to access more favorable regulatory environments and diversify operations.
- Development of a cash-generating Mineral Royalties portfolio in the USA.
Supply Chain Management
Responsible Procurement
- Maintaining good relations with suppliers through timely invoice settlements.
Climate-Related Risks & Opportunities
Transition Risks
- Oil price volatility
- Regulatory changes
Opportunities
- Development of energy-efficient products (implied)