Investors in Union Jack Oil (LON:UJO) can look forward to multiple share price catalysts, says house broker Shore Capital.
Analyst Craig Howie, in a note, told investors that Union Jack was gaining momentum onshore UK, and highlighted the recent success at the Wressle discovery which is now being advanced through the field development process.
“We anticipate an active year for Union Jack in FY2016 and, following the confirmation of plans to fast-track development of the Wressle discovery, the company has further strengthened its finances with a £0.8m placing (resulting in an estimated cash balance of £3.2m with no debt),” he said in a note.
“This provides the flexibility for follow-on acquisitions as the company seeks to expand its portfolio of drill-ready projects onshore UK.”
Howie notes the submission of the Wressle field development plan mong the possible catalysts in the coming months.
He also points to the scheduled drilling of the Biscathorpe and North Kelsey wells.
The analyst added that, following the most recent placing, the company is now fully funded into the 2017 financial year.