With everything that is coming out from the Labour government on the future of UK oil, I can only express my gratitude to David Bramhill for his incredibly wise decision to take Union Jack into the USA.
Within just 7 months, the JV partnership with Reach Oil & Gas has resulted in one commercial well, the Andrews 1, another, the Andrews 2 which is awaiting confirmation of commerciality, the secondary recovery which will utilise waste water from the aforementioned prospects to regenerate two producing wells, the revenue generating Mineral Royalties and an additional well, the Wilzetta, to be drilled in the coming months.
The speed of activity puts UK operations to shame. The support for oil exploration, development and production does the same. There’s absolutely no doubt that had this company remained focused on its UK assets, the story would not be very pleasant.
I feel the share price remains at quite a ridiculous level based on the revenue streams, the assets, the fact this company outshines most of its peers in that is is profitable, debt free and drilling for more oil. I blame the AIM 100% for this, not as some may suggest, the management.
I keep reading demands for bigger dividends, more share buy-backs, lower salaries and other ridiculous comments that offer no resolution to the present company value. There is only one thing that will drive this SP up and Donald Trump voiced it perfectly, DRILL, DRILL, DRILL!
It is long term action, not short term actions needed here and this is what Union Jack appears to be focused on.
I see nothing likely happening at West Newton now, my view has changed there due to the revelations by Miliband. Biscathorpe is looking extremely unlikely. The Penistone Flags however could still be in the game but as to whether anything gets done in 2024 is a little dubious.
So David Bramhill has, in my opinion, made a decision that could well have averted the return to placings. He has invested into what would seem to be a successful JV partnership with operators who are neither lethargic nor restricted by planners and activists.
People who are now whining and complaining about the share price have no understanding of the fact the management of Union Jack can do little to change this. A larger dividend and a few share buy-backs would be temporary and just reduce the cash in bank, which would far better spent on more wells. And this is what it would appear, is happening.
