With only a couple of weeks to hear that the Andrews-1-17 well has been completed and flow testing is underway, this could well be the start of a substantial new venture for Union Jack Oil.
If this well comes in, I can see no reason not to drill a second, third or more wells in the same area. The cost is so minimal compared to what a UK well runs to, it makes far more sense to concentrate on prospects in the US whilst this government is taxing profits to the hilt.
There is little good about fossil fuels right now. You get refused planning, contradictory to what your own planners recommend, you then get challenged when you win an appeal. When that is overturned you then get someone else challenging it, leading to years of delays.
There is absolutely no blame to lie at the management of Union Jack. When they invested in Biscathorpe, West Newton, Wressle, North Kelsey and Keddington, there were none of the ridiculous restrictions now in place. Whilst they remain excellent and exciting assets, they are in effect pointless developments until this government realises the value of onshore oil other than the ludicrous taxes they can impose on profits.
If I were David Bramhill, I would put these on the back burner and concentrate on developing the US assets which are devoid of all the constraints we are experiencing here.
If then the UK viewpoint changes, the company would have all these great assets to develop. It will not take long Β and with little cost, to replicate the present revenues from Wressle with a number of US wells without the tax liabilities.
The share price really has been unjustly hammered recently with a concentrated attack on the bulletin boards by, in the main, non-shareholders and I really do believe Tom Winnifrith has joined the fray as he has, in the past, hammered companies to the point of despair and then encourage his private group to start buying. He is known to have numerous avatars on the bulletin boards that he uses to create and encourage dissent and along with independent helpers like Heid, manage to destroy all sentiment, leaving genuine shareholders despondent and questioning their investment decisions.
Union Jack is, as I have previously mentioned, is quite unique in its position. It has cash, a lot of it, it has a regular revenue stream, it is profitable, it is debt free.
It has entered into a country that lives for oil, there are no lengthy planning waits, there are no high taxes, there are no delays in sourcing contractors, everything goes in the favour of the companies producing the oil.
Don’t think for a minute that David Bramhill doesn’t know what he is doing. He has seen the near term future in the onshore UK and is doing something to counteract what is going to be a rough time for all UK oilers. No company can expand and develop into something bigger by sitting on cash. It is all very well shouting ‘DIVIDENDS DAVID’ but giving the cash away will leave the company with no route to expansion and for me personally, I would rather forfeit a few quid now, see Union Jack reach mid tier status and get a whopping, regular dividend every year.
My opinion is that people should allow the board to get on with the job, 2024 is going to be an interesting and exciting time for shareholders, very different from previous years. I expect a plethora of news, potentially every month. I look forward to a considerable recovery in the share price and a renewed show of faith in the management, who I believe are salvaging what could be a torrid time in the UK.
GOOD LUCK TO ALL TRUE SHAREHOLDERS!
