Union Jack Share Chat (UJO)

I'm thinking 16p,but could be wrong,someone sold 20mill at a little over,this morning???.

It also shows any meaningful news must still be a a long way off for WN otherwise they wouldn't be allowed to buy.

Ian - unless they company is called Pantheon Resources.

Wressle has certainly been difficult to get into production. We’ve been frustrated by every planning meeting up until the last one. That process is surely nearing a conclusion now.

Stick, in Texas you find oil it's out of the ground and in production within 3 mouths, that's what we need to do to keep up with the rest of the world!!!

All partners in WN now have cash reserves.

The cash has been raised against potential assets in tbe ground.

They really need to start moving forward now .

No excuses .

Trouble is the uk is crap at fast tracking oil and gas developments. Things take too long and timelines get stretched resulting in a large amount of shares in issue over the years.

shows confidence

Yes Stickmandickman,

David Bramhill does accretive placings. His track record with UJO is good.

Important to note that UJO isn’t a lifestyle company and plc costs are low.

Wressle will generate significant cash flow, around £3m a year. Hopefully that milestone isn’t too far away now.

Dilution is ok if it’s accretive. ie the use of cash either increases resources which results in a greater asset value. Or, is used to buy a producing asset resulting in greater cash flow. Dilution becomes ineffective if used to pay salaries. Until ujo start generating tangible cash flow then placings will be regular.

I’ll try and help you a little here Lmoll:

You said:
‘Let me see if i have got this right.
If ujo place £5mil worth of shares, then surely the value of the company increases by £5mil. If the shares are bought before it is announced then there is no need to find buyers on the open market therefore the sp should be about the same but ujo have got an extra £5mil in the bank.’

After the placing UJO would have another £5m in the bank. However they will need to spend that as they have already set out - couple of wells at WN and a Bisc sidetrack etc. That £5m won’t be on the balance sheet for long.

Usually you might expect the SP to drop to the placing price - that’s what AIM stocks generally do. That said UJO is a rare beast in that the last time David Bramhill placed the SP immediately went higher. The key is that the placing funds are used to add value to UJO. Thats what DB does. Many AIM stocks don’t. Placings are often ‘keep the lights on’ placings.

The ‘investors’ who take part in the placing may it may not have sticky hands. There will be a proportion who will flip the stock for a quick profit. If the placing is at say 0.16 they can immediately take out capital and leave free shares riding, or sell the lot for a quick turn. That means there will be placing shares entering the market.

You said:
‘If this is what is needed to get the EWT up and running again or pay for wressle to be up and running and pumping oil as soon as the decision has been announced (personally i feel they DB has a very good indication of which way the decision will go) then it could only be a good thing?’

That is a good thing - David Bramhill has used previous placings to progress UJO. So far so good. No reason to think he won’t do so again.

I hope that helps. I’m sure others could add more detail.

Best BWM

Lmoll
The total value will indeed be higher but the value per share would, all other things being equal, change to be closer to the placing price as there are more shares in issue.

I understand it is a lot more complex than i made it seem, loads of different factors etc to take into consideration. Just tried to understand in its simplest form.

Its much more complex than that Lmoll.

The 50mill sell is likely Humber selling most of remaining 75mill shares.
Virtually finished & CO finished so large holders out; should be upwards & onwards now.

To get out this morning
50mil trade

I wonder where the floor is for the SP here.
Struggling to hold tight as losing a huge amount already.

isn't that a bit risky? although the case seemed to go well, its impossible to tell in these cases.

You have to also bear in mind that Humber have interests in several other licences, including Biscathorpe and Wressle, so the Langs will need quite deep pockets to stay in the game. Share capital of Humber Oil and Gas is currently just £1 and that of the holding company Lang Holdings just £100. I guess that's why Frazer sold out his UJO holding (well at least bleow 3%). I can see them getting taken out or mergiung with UJO, that ideas's been floated here a few times.

Thanks gkb47. Its a pity the sp wasn't over 0.3 but hopefully soon will be.
Leaks are never good, even though we would like to know asap it destroys company/ceo plans etc and gives an unfair advantage to some.

Is UJO struggling to raise £5 million? Perhaps, but I doubt it. It's AIM listed, so they will almost certainly get the cash at some price or another. But Humber O&G will have to keep up with the new work programme. Will they be able to raise a similar amount for their 16.665% share of the accelerated work programme? The Lang family (who own Humber) probably have fairly deep pockets, but do they have £5 million readily available? If not, I reckon Humber's share of WN will soon be on the market, especially if you take into account the recent positive oil / gas in place news. Maybe RBD, along with UJO, will try to buy Humber out. That's if they are not already talking to them. On the RBD / LSE bulletin board there was a question whether Humber was "cashed up and ready to rock with WN" . It also mentioned that this hasn't been discussed enough. I'm not sure whether oil and gas projects can move at the pace of the worst funded participant, but I would think not. If companies like Humber - but not UJO, I hope - can't keep up with the programme, will they be in danger of losing their interest? Can anyone enlighten me about this please? Humber have recently filed their 2018 accounts and they don't look exactly brilliant to me. If you are interested have a look at Companies House website:
https://beta.companieshouse.gov.uk/company/11117055/filing-history

2 weeks ago I get abuse for suggesting .17 based on research and expected placing and guess what. .17 it is, now for the good news. I will now suggest turn of the year start the upward momentum which will breach .25 into .30 quickly I may get abuse for this but hey tough skin and rarely wrong. Glh

Do make the heart flutter a bit, until you check them out.

Lmoll the issue isn't so much the raise of £5m, we all knew that would happen as some point it's rather the timing of it and the way it's been leaked. From an existing share holder perspective you want that placing done as high as possible as it minimises the share dilution. It's probably now going to happen at a much lower price than it should have, that is not good for us.

great price...
whats not to like .. will be in the 20s again soon .. ;-)