Union Jack Oil (UJO) states that it “is pleased to announce an update in respect of the West Newton A-1, A-2 and B-1z discovery wells as part of the Extended Well Test programme, accompanied by an updated estimated best estimate in-place oil and gas volumetrics of the Kirkham Abbey reservoir”. The shares have responded more than 6% lower to 18p to sell, so is the news really ‘pleasing’?
Union Jack Oil (UJO) has announced news on the West Newton B-1Z well, in which it has a 16.665% interest, that it is “encouraged by the indications of permeability of the lower portion of the Kirkham Abbey under test, and the initial recovery of hydrocarbons to surface”. What’s the detail of the ‘encouragement’?
Whenever a smaller oil company is drilling a well these days you pretty much have to expect the share price to get hammered unless they announce a substantial find that exceeded market expectations, and that is exactly what hammered to Union Jack Oil (UJO) this week.