- UJO share surge 15% after the company generated $2 million from its Wressle well.
- Investors cheered the move as the firm starts the year on the right footing.
- UJO shares seem pretty attractive at current prices given last year’s 59% decline.
The Union Jack Oil PLC (LON: UJO) share price surged 15% after revealing that it had generated revenues worth $2 million at its Wressle project in North Lincolnshire.
The oil exploration, development and production company revealed that the revenues had been generated in the few months since the well resumed operations in August 2021.
UJO has a 40% interest in the project and warned investors that the well was producing oil under a natural flow model since production remains constrained on a restricted choke.
Investors cheered the announcement as evidenced by the rally in UJO shares earlier today.
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However, investors should remember that UJO shares fell over 59% in the past year, but are attempting to reverse course given that they are up 5.4% since the year began.
Today’s announcement demonstrates that UJO has started the year on a positive note and that there could be more good news in store for investors as the year unfolds.
Union Jack Oil is also set to benefit from the rising global demand for crude oil as fears surrounding the Omicron variant diminish as scientists deem the new variant as being less deadly than previous variants such as the Delta variant.
David Bramhill, Union Jack’s Executive Chairman, commented: The revenues of in-excess of US$2,000,000 to Union Jack, whilst under test production, are highly positive for the Company which remains in prime financial health as the above figures illustrate. We believe that Wressle holds considerable further upside which will be demonstrated over the foreseeable future and we look forward to reporting on progress in due course.”
“As well as Wressle, the Company has three other cash generating projects and under current oil prices, for the first time is now cashflow positive and covering all of its outgoings, including corporate, administrative and project operating costs.”
Investors interested in owning UJO shares could find the current prices pretty attractive given the significant decline witnessed over the past year.
*This is not investment advice. Always do your due diligence before making investment decisions.
Union Jack Oil share price.
Union Jack Oil shares rallied 15.04% to trade at 15.53p, rising from Monday’s closing price of 13.50p.