Wednesday 14 November 2018 | ShareProphets: The one stop source for breaking news, expert analysis, and podcasts on fast-moving AIM and LSE listed shares
Tom Winnifrith Bearcast: I agree with everyone on one matter & with in house Bulletin Board loon Wildes on another
Maistro – fundraising at a massive discount, despite in September arguing “significant progress” & “looking forward with confidence”!
We have no idea what our pal Brokerman Dan is up to. For as long as we can remember he has been beastly about Union Jack (UJO) writing things that are true, untrue and half true but all nasty. But suddenly his mate Chris Oil is buying shares and Brokerman Dan thinks the shares are cheap as chips. Whatever. What is that about sinners and repenting?
The City's No 1 oil analyst Zac Phillips has today published a note on Union Jack Oil (UJO) setting out exactly why he is so bullish. Over to the great man...
Union Jack Oil (UJO) is “pleased to announce that the company has agreed terms… on a proposed farm-in for a 16.667% licence interest in PEDL183… located onshore UK in East Yorkshire”, with this accompanied by a £2.25 million equity raise…
Union Jack Oil (UJO) has announced results for the first half of 2018, including to “expect a very active six months for Union Jack with the drilling of the economically compelling Biscathorpe-2 conventional well and the upcoming planning processes to allow the Wressle discovery to move to development”…
Yesterday North Lincs council rejected the latest permit application for the Wressle field where Union Jack (UJO) is a junior partner. This was expected as this council is a politically driven mess. The partners will now appeal to grown ups at Central Government. So while disappointing this is not unexpected and, of course, Union Jack has a number of other assets. So the minor sell off in the shares today does not change our BUY stance.
Union Jack Oil (UJO) “is pleased to announce that it has acquired a further 12.5% in the licences PEDL180 and PEDL182 containing the Wressle discovery and the Broughton North Prospect”…
Union Jack Oil (UJO) has announced results for 2017 and outlined why it is “enthusiastic in respect of the year ahead”…
Union Jack Oil (UJO) has updated that “further to the announcement of 5 March 2017… pleased to announce that the company has signed a Farm-in Agreement for a further 10% licence interest in PEDL253 increasing the company's economic interest to 22%”…
Union Jack Oil (UJO) has updated including noting a draft decision advertisement issued by the Environment Agency that it is inclined to award a bespoke environmental permit for drilling and testing the Holmwood exploration well in PEDL 143 and how the company “is positioned to deliver ongoing news flow throughout 2018 from our onshore portfolio of producing assets, drill-ready appraisal and exploration targets”…
No this is not an airfield at all but a small oilfield seven miles from Lincoln. Union Jack Oil (UJO) is paying approximately £137,000 for a 20% stake. This figure includes a pro rata share of the Operator`s legal, licence, planning and acquisition costs. The other 80% is owned by operator Egdon Resources.
Union Jack Oil (UJO) has announced that it has bought the "entire onshore hydrocarbon portfolio interest of Nautical Petroleum Limited, a wholly owned subsidiary of Cairn Energy PLC.". That sounds more impressive than it actually is. This is a small bolt on deal.
The planning committee of North Lincolnshire County Council met on Monday to - again - discuss the Wressle application. Officials had recommended approval as it fitted in with all the authority's guidelines. All was set fair. Then came the first sign of trouble.
Union Jack Oil (UJO) has announced that the North Lincolnshire County Council's Planning Committee will meet on Monday 3rd July 2017 at 2 PM to determine the new planning application for the Wressle Development which includes additional detailed information to address the specific concerns raised by North Lincolnshire County Council in its 11 January 2017 decision to refuse the original application.
Okay it is from house broker Turner Pope so it is not to be viewed as impartial but then it does not come with a buy or sell stance, this report just gives a deatiled breakdown of the assets and operations of Union Jack Oil (UJO), whose shares -at 0.14p are - I think - cheap.
Union Jack Oil (UJO) has announced that Egdon, the operator of blocks PEDL180 and PEDL182, the Lincolnshire based Wressle prospect, has received a variation to the Mining Waste Permit. Union jack has a 15% stake in Wressle where progress in getting the field producing has been delayed by NIMBY's at the County Council.
SP Angel is houes broker to Union Jack Oil (UJO) so take its notes with a pinch of salt. Bur I rate analyst Zak "The Knife" Phillips highly and as such today's reiterated buy stance after the news from Wressle cannot be totally ignored. As for the target price! The Kinfe writes:
Union Jack Oil (UJO) has noted an “Appeal & New Planning Application” announcement on the Wressle oil field (Union Jack: 15%, including 3.33% subject to approval from the Oil and Gas Authority) from operator Egdon Resources (EDR).
Now we know the reason for the £1.4 million placing at 0.135p by Union Jack Oil (UJO) a week ago. As we predicted at the time the acquisition it was targeting was at Wressle in Lincolnshire. Today we are told that Union has spent £600,000 to buy from Celtique Energie Petroleum Limited a further 3.33% interest in PEDL180 and PEDL182. Union Jack currently holds an 11.67% interest in both licences so its stake now goes to 15%.
So another keep the lights on placing eh? As it happens no although the market has (wrongly) taken it that way. Union Jack Oil (UJO) already had a comfortable cash balance. So why raise a gross £1.4 million at 0.135p?
Union Jack Oil (UJO) and its partner on the Wressle field, Egdon, have appealed against a planning set back on the Wressle field in North Lincolnshire. In the end it will win and at 0.17p (offer) the shares are undervalued and the stance is buy with a target of c0.3p at least.
Union Jack (UJO) announced a couple of weeks ago that the planning committee at North Lincolnshire County Council had served up an adverse ruling in respect of the development of the Wressle Oil Field in North Lincolnshire licences PEDL180 and PEDL182. Union Jack holds an 11.67% stake in both licenses.
The UK's 14th onshore licensing round came to a close today with the final awards of new acreage and Union Jack (UJO) gets a win from the process. Egdon Resources has formally been awarded license PEDL 339 in the East Midlands and if Union Jack pays 20% of the cost of the first well - which it will - it gets a 10% interest.
The world still hates small oil stocks. We are not sure when that will change but given how many of the mid caps are collapsing either entirely (Afren) or surviving only via schemes that see shareholders almost wiped out ( XCite, Gulfsands, Gulf Keystone, IGAS, LGO, etc, etc) we feel we could be at a Burmah Castrol moment. Do a google search if you are too young to understand the reference!
Featuring shares in Amerisur (AMER), Orosur Mining (OMI), Savannah Resources (SAV), Surgical Innovations (SUN), Union Jack Oil (UJO) with share price targets for all five stocks.
SP Angel acts as an adviser to AIM listed Union Jack Oil (UJO) so take this with the proverbial pinch of salt. However the share price target seems so bullish that it might be worth reading this detailed note out today.
Really? 223% upside? Amazingly SP Angel does not appear to be house broker to AIM listed Union Jack Oil (UJO) so maybe this note by Zac Phillips is of interest and might almost be seen as independent. He seems to like the shares.
David Bramhill, entrepreneurial executive chairman of Union Jack Oil (UJO), has been sounding characteristically bullish about tests at the Wressle 1 oil and gas discovery in North Lincolnshire, where the AIM -quoted company holds an 8.33% stake. Fellow AIM counter Egdon Resources (EDR), with a 25% interest, has estimated a potential resource of more than two million barrels at Wressle, in the Crosby Warren field, and recently indicated three separate reservoirs had shown oil and gas, with an oil column below the gas zone, and extended tests are now under way.
The markets are all about momentum and expectation a lot of the time, and that is especially the case with companies listed on AIM. One company that is currently seeing a fair bit of both of these share price drivers is Union Jack Oil (UJO), but I strongly suspect that it will end up vastly over-valued, even if there is further positive news on the current drill that it is involved in.
After reading Union Jack Oil’s (UJO) interim results released today it really did cement the company in my mind as being well placed to take full advantage of the buzz around onshore UK. It’s little wonder people are looking for the safe haven of Europe as West Africa with Ebola, The old Eastern Bloc '' nuff said '' and the Middle East has the dawn bombing raids to look forward to.
Broker SP Angel has published a detailed research report on AIM listed Union Jack Oil (UJO) claiming that shares in the AIM listed UK onshore oil play should be valued at 0.7p rather than the current 0.27p.
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