{"id":111992,"title":"SP Angel, a City broker, maintains a ‘buy’ recommendation for Union Jack Oil PLC","publisher":"Share Talk","author":"sharetalk","published":"2024-01-03T11:35:45+00:00","modified":"2024-01-03T11:35:45+00:00","canonical_url":"https://www.share-talk.com/sp-angel-a-city-broker-maintains-a-buy-recommendation-for-union-jack-oil-plc/","markdown_url":"https://www.share-talk.com/sp-angel-a-city-broker-maintains-a-buy-recommendation-for-union-jack-oil-plc.md","json_url":"https://www.share-talk.com/sp-angel-a-city-broker-maintains-a-buy-recommendation-for-union-jack-oil-plc.json","category":"Blogs","categories":["Blogs","Energy","Oil and Gas"],"tags":["3D seismic data","Biscathorpe","Biscathorpe-2","Broughton","David Bramhill","development","EDR","Egdon Resources","Egdon Resources U.K","EOG","Europa Oil & Gas","Fiskerton Airfield","gas","Graham Bull","Humber Basin","Humber Oil & Gas Limited","HYDROCARBON","Keddington","Lincolnshire","oil","onshore hydrocarbon","PEDL253 licence","production","side-track","South Humber Basin","UJO","Union Jack Oil","Union Jack Oil plc","Weald Basin","West Newton","West Newton A-2","Wressle","Wressle-1"],"featured_image":"https://i0.wp.com/www.share-talk.com/wp-content/uploads/2024/01/UJO-3RD-JAN-2023.jpg?fit=1200%2C800&quality=89&ssl=1","format":"news","language":"en-GB","content":"SP Angel, a City broker, maintains a ‘buy’ recommendation for **Union Jack Oil PLC (AIM: UJO),** forecasting over a threefold increase in its stock market value.\n\nAnalyst David Mirzai highlights Union Jack’s leading role in the Wressle field in Lincolnshire, noting its portfolio of oil and gas production generates significant free cash flow for reinvestment and dividends for shareholders.\n\nUnion Jack recently announced a major resource upgrade at Wressle, in collaboration with Europa Oil & Gas and Egdon Resources. Mirzai emphasizes that Wressle’s production over the past two years has significantly improved Union Jack’s financial standing. He anticipates the company will continue generating substantial cash, potentially leading to shareholder returns through buybacks or special dividends, and further investment in its portfolio.\n\nThe analyst suggests a target price of 66p per share, a notable increase from the early 2024 price of around 20p. He points to new investment opportunities, including developing the unexploited Penistone reservoir at Wressle, the Keddington reservoir, and the West Newton project. For Keddington, planning consent for a side-track well is already in place, with drilling expected in early 2024. At West Newton, discussions are ongoing for third-party financing, with a horizontal appraisal well planned in the first half of 2024.\n\nShore Capital’s Craig Howie also expressed optimism following the [recent resource estimates](https://www.share-talk.com/union-jack-oil-plc-aimujo-pedl-180-and-pedl-182-competent-persons-report/).\n\nHe commends the substantial reserves upgrade and Union Jack’s effective production management at Wressle, backed by comprehensive technical evaluations and updated data analysis. Howie’s confidence in the revised volumetric assessment underscores the potential for significant value creation from these assets."}