With a dozen positive RNS’s this year, Union Jack has been the subject of much dismay by shareholders in that this news, of which has all been good, has had no positive impact whatsoever on the share price.
There’s no doubt in my mind, and this will be a wholly different opinion to some, that the main reason for the resistance to increasing value has been in the most due to the wholly unacceptable situation put in place by the government, the planners and the local councils.
Union Jack has some tremendous assets in West Newton, Biscathorpe and Wressle. 1. The ‘biggest gas discovery in 50 years’. 2. The ‘largest un-appraised fossil fuel discovery onshore UK and 3. The second biggest oil producing well onshore UK.
These assets however have been beset by planning refusals, appeal wins immediately challenged by activist groups, and operators who have their focus elsewhere and not bringing to fruition some of the assets that Union Jack are relying on to advance the company as hoped.
This year looks no different when it comes to any chance of increasing revenue streams in the UK with a minimum of 18 months to develop the Penistone Flags to revenue generating status, a year’ish or more to drill and flow gas at West Newton and Biscathorpe, well, who knows as this is under challenge by an action group.
Of course, even when all these issues and timings are resolved, there is a high chance of a Labour government taking control of this country and they have already declared their dislike for fossil fuels and their intention to increase the already ridiculous 75% energy profits levy which has driven investment away from the UK oil industry.
The listing on the US OTCQB announced today is a major step in establishing a presence for the company in a country where fossil fuels are valued and every barrel is worth substantially more than a UK barrel. There are no planning issues, protestor issues. It is almost a case of choosing a plot, shaking hands with the landowner and bringing the rig on site. Almost that simple.
So as far as Union Jack is concerned, why, with all the negativity on oil & gas would anyone invest in it? What are the chances of the company progressing with all the liabilities imposed on it? Little to none. With only the cash coming in from Wressle along with a small revenue from Keddington, there is presently only a relatively static future here in the short term and for UJO to progress, they must generate more interest, they must generate more revenues. To do this, they have ventured into pastures new.
With the results of the drilling of the ANDREWS-1-17 well due any day, the listing on the OTCQB is no doubt a pre-cursor to a presence where US small investors will be aware of and can now take a position in a company drilling in their own country. Oklahoma is one of the biggest, most prolific oil producing areas in the states and with Union Jack being in a position of being able to fund a number of wells, along with purchasing a number of revenue generating mineral royalties, the company could well find itself the subject of quite a bit of interest, especially so if their first well is a producer.
David Bramhill and his team have been under a lot of pressure over the past year or so to sort out what has been a torrid time for the share-price, where dividends, share buybacks and good news just hasn’t cut it. This is not a management failure, I don’t feel anything they did would have helped to strengthen and maintain any value. Look at every small oiler in the UK, their values have plunged alongside Union Jack regardless of what they have announced.
Look at the facts, cash, revenues, no debt, great assets, new ventures, there’s not really anything to dislike about Union Jack and I feel confident things are now turning.
PS: Finally, just for a little fun, by special request I have been asked to include this by @Jimmcdee for the benefit of @Heid_Oil who I know relishes every word I write https://youtu.be/YtlA-Zu-X2A?si=PF8W_uhQci0tSECl 😂
