Malcy's Blog :20 Feb 2021 09:19
Union Jack has announced a share consolidation of 200 for 1 as directors believe that the existing share capital structure is no longer appropriate, as the high number of shares in issue combined with the relatively low price per share is thought to result in excess volatility, reduced liquidity and a widening in the market bid and ask share price spread in the Company’s shares.
‘The Board believes that the Company is now in an excellent financial and operating position given the significant progress made in recent years on its three key projects at West Newton, Wressle and Biscathorpe and that now is an appropriate time to implement the Consolidation and are proposing consolidating the Existing Ordinary Shares in issue so that every 200 Existing Ordinary Shares will be consolidated into one Consolidated Ordinary Share’.
‘The Company’s predominantly retail investor shareholder base has been an essential part of the Company’s growth since its AIM Admission and IPO in July 2013 and remains the case. Their ongoing support has been important to the Company building its balanced portfolio of projects.
As the company point out the portfolio is in a balanced, strong and attractive position, the active appraisal of the major discovery at West Newton following successful wells at WN 1-A, WN A-2 and WN B-1Z that is in the final stages of preparing to undertake long term production testing of WN B1-Z followed by WN A-2 and where the proposed WN B-2 appraisal well is currently planned to be drilled in H2 2021
Production from the recent development at Wressle where high-quality oil is currently free flowing during its initial test and production clean up period and the Biscathorpe discovery where plans are advanced for drilling the B-2Z appraisal well also during H2 2021; as well as material interests in two producing oilfields at Keddington and Fiskerton Airfield.
This is a sensible and practical move by UJO who are in a very good operating position and the consolidation ensures a more professional, convenient way of trading the shares.