Union Jack Oil PLC (AIM:UJO) has confirmed that it will pay a maiden dividend and said it will undertake a share buy-back programme.
The payout move comes as the company continues to benefit from favourable production volumes and higher oil and gas prices at the Wressle field, onshore UK, where earlier this month net revenues surpassed US$10mln since its expectation-beating return to production last August.
“Union Jack's financial position has been transformed during 2022 and it now has a robust balance sheet, a fully funded and active work programme for the next 18 months on its principal projects and has no borrowings,” said the company's executive chair David Bramhill in a statement.
He added: "These distributions are an important means of returning value to shareholders and signal the significant progress that Union Jack has achieved during the past year."
UJO said in a statement that it will pay shareholders 0.8p per share as a special dividend, amounting to £902,927 in aggregate.
The company noted that the ex-dividend date will be Thursday 17 November, followed by the 18 November record date and a payment date of Friday 16 December.
Separately, a share buy-back programme, funded out of existing cash resources, will be undertaken within the company’s existing authorities granted by shareholders. Any share purchases will be reported via the London RNS, the company said.