Shore Capital said it was 'confidently maintaining' its 90p risked net asset valuation of shares in Union Jack Oil PLC (AIM:UJO) based on its debt-free balance sheet, shareholder-friendly distribution policy and strong cash generation and driven by its two key UK projects.
That's a significant premium to the current share price, which was changing hands for just over 14.1p.
Shore issued a short note following news that work is underway on Andrews-1-17, UJO's first well under its new venture in Oklahoma, USA.
Drilling is expected to reach a target depth of 5,200 feet in around ten days, followed by eight days of completion work.
The company, in a statement, highlighted that the well targets the Hunton Limestone, a reservoir known for its conducive position to oil migration due to its proximity to the oil-prone source rock, the Woodford Shale.
Shore called Andrews, operated by partner Reach Oil & Gas Company, as a potential further drilling catalyst.