Union Jack commencing trading on the US OTCQB Venture Market is an interesting move suggests house broker Shore Capital.
While AIM will remain the primary listing, the US listing increases liquidity, widens the pool of potential investors and raises its domestic profile in the US.
“In our opinion, Union Jack’s admission to the OTCQB Venture Market can only be considered a positive – enabling uncomplicated trading access for US investors, but without any US-specific reporting requirements.”
Ahead of further news, particularly regarding the recently-spudded Andrews-1 well onshore Oklahoma, Shore said its last-published 90p/share Risked NAV estimate is confidently maintained.
“We also continue to highlight Union Jack’s debt-free balance sheet, shareholder-friendly distribution policy and strong cash generation – driven by the flagship Wressle development in North Lincolnshire."
The broker adds that the collaboration with Reach in the US has already gained strong momentum while material progress towards drilling has also been reported at West Newton in East Yorkshire.