Shore Capital has reaffirmed its strong valuation of 90p per share for Union Jack Oil PLC (AIM: UJO), citing the company’s debt-free financial status, a shareholder-oriented distribution approach, and robust cash flow. This valuation notably exceeds the current trading price of slightly above 14.1p per share.
This revaluation follows the announcement that Union Jack Oil is progressing with its first well, Andrews-1-17, as part of its new venture in Oklahoma, USA. The drilling process is set to reach a depth of 5,200 feet within approximately ten days, with an additional eight days allocated for completion activities.
Union Jack Oil, in a recent statement, emphasized the strategic importance of the Hunton Limestone as the target for this well. The reservoir is favourably located near the oil-rich Woodford Shale, facilitating effective oil migration.
Furthermore, Shore Capital highlights the Andrews project, operated in partnership with Reach Oil & Gas Company, as a potential key driver for further drilling initiatives.
