- Union Jack Oil (UJO) shares surged 7.27% on maiden H1 profit.
- The oil and gas company had £10.5 million in cash at the end of H1.
- So, should you buy UJO shares? Read on to find out.
The Union Jack Oil PLC (LON: UJO) share price surged 7.27% higher after releasing its half-year earnings results showing that it made a maiden profit of £2,034,086 during the six months to 30 June 2022.
Investors cheered the announcement, which was no surprise since the company had notified the markets of the same during the six months. UJO shares have risen 185.41% this year amid investor optimism about the oil company’s profits.
Also read: Oil Trading Guide – How To Trade Oil.
UJO generated revenues worth £4,384,254 and had £10.5 million in cash, liquid investments and receivables as of 6 September 2022. The company is in a robust financial condition since it was debt free, which makes it quite attractive to investors.
The company also revealed that its Wressle oil field remained one of the most productive conventional onshore oil fields in the UK and was on track to become the second-ranked oil field, with the first being the famous Wytch Farm.
Union Jack Oil’s flagship Wressle oil field had produced about 225,000 barrels of oil with zero water cut by reporting time. In addition, the company has been granted planning permission for its West Newton project, where it is pursuing joint ventures with other company sot develop the project sites.
The company told investors that the High Court’s approval of its capital reduction plan had unlocked about £21,553,557, which it could use as distributable reserves to deliver future shareholder returns in the form of share buybacks or dividends.
David Bramhill, Executive Chairman, commented: “I am very proud to present a transformative set of Half Year results containing our maiden profit that reflects the years of determined effort by the Board of Directors, advisers and valued technical consultants with an unwavering objective to grow Union Jack into a mid-tier company. Our Operators also deserve great credit for their commitment to progressing our principal projects with the support of their Joint Venture partners.”
So, should you buy UJO shares? It is never a good idea to chase a stock higher, and given that UJO shares are already up 185% this year, I would wait for a decent pullback before jumping in.
*This is not investment advice.
Union Jack Oil (UJO) share price chart.
The Union Jack Oil share price surged 7.27% to trade at 41.30p, rising from Tuesday’s closing price of 38.50p.