Union Jack Oil - Strong Buy29 Sep 2022 13:13
The gas will not be staying in the ground at West Newton & will flow commerically imo. Today's CPR was impressive as well as the current value of the asset just for the Kirkham Abbey.
There is big disconnect in the markets with volatility at the moment an oil price is up touching 90$ again.
We are facing a severe gas/condensate storage problem in 2023 with Russia not filling us up with imports.
There will be Major interest with West Newton's gas an the infrastructure an plans in place in the surrounding areas for blue hydrogen from our gas, especially with gas to become a more valuable commodity clearly.
Shell is prolific player at the moment in the area an I would defiantly see their deep pockets in the queue.
Meanwhile our Wressle asset continues to produce as we approach 10 Million RNS. As we approach winter I see oil price rising an OPEC cutting production next week. Then of course we are due an update from Egdon in their preliminary results, maybe earlier, in October for the gas to grid sales going forward.
Of course we have the Biscathorpe appeal, which we will win, with the current energy crisis. The biggest unappraised well in the UK to also be drilled in 2023 .
Union Jack is undervalued at the moment but this will soon change being cash rich, debt free and massively investable.
Strong Buy