logo-loader
viewUnion Jack Oil PLC

Union Jack Oil set for “strong activity” in the coming months – SP Angel

“The placing enables Union Jack to progress the technically and financially compelling West Newton project under a planned two well drilling and testing programme for H1 2020," said analyst Sam Wahab.

Union Jack Oil PLC - Union Jack Oil set for “strong activity” in the coming months – SP Angel
SP Angel has a ‘strong buy’ recommendation and has set a 0.7p price target

Union Jack Oil PLC (LON:UJO) is set for a phase of “strong activity” in the coming months, according to broker SP Angel.

The stock broker earlier this week arranged a £5mln equity fund raise which positions the UK onshore oiler for two new wells at the West Newton project along with seismic work.

SP Angel has a ‘strong buy’ recommendation and has set a 0.7p price target which suggests some 360% upside to the 0.15p placing price.

“The placing enables Union Jack to progress the technically and financially compelling West Newton project under a planned two well drilling and testing programme for H1 2020 which could add significantly to the earlier successes seen at the A-1 and A-2 discoveries,” SP Angel analyst Sam Wahab said in a note.

READ: Union Jack Oil raises £5mln for new wells

“The company also has the necessary funding to complete a seismic acquisition programme over other structures that have been highlighted over the licence area, that could hold significant additional upside potential.”

Wahab also noted that the sidetrack drilling at the Biscathorpe project could unlock some 40mln barrels of resources, which would be another “transformational hydrocarbon accumulation” that would complement the West Newton asset.

Additionally, at the Wressle project the analyst said that success – in a planning dispute – could lead to a commercial oil operation, flowing 500 barrels of oil per day gross, which could generate US$3mln a year for Union Jack.

In a statement on Wednesday, Union Jack chief executive said: “The board is delighted with the result of this successful fundraising,” said David Bramhill, Union Jack chairman.

“The placing provides funding to progress the technically and financially compelling West Newton project under a planned two well drilling and testing programme for H1 2020 which we expect will add significantly to the earlier successes seen at the A-1 and A-2 hydrocarbon discoveries.

"We also have in place the funds required to complete a seismic acquisition programme over other structures that have been highlighted over the licence area, that we believe hold significant upside potential over and above the West Newton project.”

Quick facts: Union Jack Oil PLC

Price: - -

AIM:UJO
Market: AIM
Market Cap: -
Follow

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events

NO INVESTMENT ADVICE

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

In exchange for publishing services rendered by the Company on behalf of Union Jack Oil PLC named herein, including the promotion by the Company of Union Jack Oil PLC in any Content on the Site, the Company receives...

FOR OUR FULL DISCLAIMER CLICK HERE

Watch

Investor Update: Union Jack's West Newton potential confirmed

Headlines from the Proactive UK newsroom. Union Jack Oil (LON:UJO) has been informed by the operator that the Kirkham Abbey reservoir in the West Newton project area contains a base case 146mln barrels of oil and up to 283mln barrels in a best case. The liquid element is much higher than...

on 11/11/19

2 min read