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• In Brief:
Union Jack Oil* (LON:UJO - 0.14p) - (BUY - 0.67p) - Extension Gives Flexibility
In Brief
• Union Jack Oil* (LON:UJO - 0.14p) - (BUY - 0.67p) - Extension Gives Flexibility: Today's news that the Oil & Gas Authority has provided an extension to PEDL143, which contains the Holmwood Prospect. More importantly, the time allows the Company, and its partners, to adequately design a well that will allow for the testing of the conventional and non-conventional prospectivity within the block. the non-conventiona prospectivity is potentially the larger as Holmwood is inside the BGS' window deemed mature for oil in all the shale horizons (Corallian, Kimmeridge, Oxford, etc.). We have not yet quanti fied our assessment for the shale prospectivity, but the conventional Holmwood accumulation added ~$1.8mm to the risk adjusted value (0.04p) when it was first announced. We are reiterating our 0.67p Target Price and BUY Recommendation.