Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from ShareProphets). I have no business relationship with any company whose stock is mentioned in this article.
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.
An official for the hard left UNITE Union, which bankrolls Jeremy Corbyn's Labour, spoke up as a spokesman for British Steel workers. UNITE opposes all fossil fuel extraction in the UK and at that point two of the ten councillors stated that they belonged to the union which wants to return us to the 13th Century or at least to the glories of the three day week and so said they would vote no. It got worse as a Tory piped up and said the application should be rejected as fracking was wrong. Officials pointed out this was not fracking but we live in a post fact era and so that did not matter.
In the end the four Labour members voted 3-1 against and the six Tories split 4-2 against and the application was rejected. Maybe we have got this all wrong and following the General Election the UK really does want to head back to 1973, to an era when businesses fled the UK and we were wholly reliant on foreign oil, when facts ceased to matter as we committed economic suicide. Maybe that is the way things are going in which case it is not just Union Jack Oil (UJO) which owns 15% of Wressle but all British companies that must be worried.
We do not think that this is the case. An appeal to higher, non politicised, officials was already underway, that is to say the Planning Inspectorate. It must judge the application on facts not fake facts or Luddite Union dogma. We believe that approval will go through in a few months time and council tax payers in North Lincs will then be presented with a hefty bill as a result. As they are told by their elected councils that libraries must shut, council tax go up, etc because of wicked Mrs May and austerity they should consider how their councillors wasted so much cash voting down an application on the basis of "fake facts" or diktat from a hard left Trades Union.
Union Jack shares slumped to 0.11p -0.13p on this news and we apologise for anyone,temporarily, down. But the company has £2 million cash and is now valued at £4.5 million. Wressle is far from a write off. And there are other assets noticeable drill ready Holmwood in the Weald basin. Given what is happening in the blocks either side of it thanks to UK Oil & Gas (UKOG ) and Angus Energy, the Holmwood stake alone more than justifies the current EV.
The market over-reacted driven by some hysterical comment from BB posters who are, quite simply, ignorant of how this industry works. that is your opportunity: BUY.
This article first appeared on HotStockRockets - to catch the next red hot share tip from the HotStockRockets team out shortly as well as two SCORCHERS we tipped on FRIDAY 30th June, for just £5 click HERE
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