Union Jack Oil PLC (AIM:UJO) has announced that it will pay an interim dividend of 0.3p per share in July.
It is also launching a share buy-back programme with 2.82mln shares purchased in open market transactions on Monday 27 March.
The company, in a statement, said it will pay the dividend on 28 July. It follows a 0.8p per share dividend paid in December.
Union Jack chair David Bramhill noted that together the two dividends would “equates to a gross yield over and above the current Bank of England Base Rate at the current share price.”
"Union Jack's financial position has been transformational and the Company has a robust balance sheet, a fully funded and active work programme for its principal projects and has no borrowings,” Bramhill said.
He added: “In addition to dividends, we have also undertaken selective share buybacks, all of which signal Union Jack has an active capital distribution policy that is made possible because it is underpinned by the significant progress we have achieved during the past year.
"Any and all future dividends and share buybacks will be reviewed and determined in line with the company's capital allocation and distribution policy criteria to ensure the resulting distribution is in the interests of shareholders."