Union Jack Oil PLC (AIM:UJO) told investors it is advancing plans to pay dividends or make share buybacks in the future.
The company, in a statement, said it has reviewed its operational and financial plans for 2022.
The decision to seek shareholder distributions comes amid “an excellent current performance, principally as a result of the Wressle development, where revenues have been transformational for the company,” Union Jack said.
READ: Union Jack books US$3mln of revenue from Wressle
To allow such distributions the company must reorganise its capital in order to create distributable reserves.
It proposes a reduction in the company’s capital, which will be subject to approval by shareholders.
Looking ahead, the company said it intends to apply a consistent and disciplined approach to capital allocation.
It seeks to manage its overall funding requirements, maintain a strong balance sheet that is debt-free, invest in growth projects and consistent with Union Jack's progression into a meaningful producing company, make appropriate distributions in order to reward its shareholders.