Options galore for Union Jack Oil
“…We’re in a really, really excellent financial position and we’re a small board, and we can manoeuvre quite quickly. We’re quite dynamic in the way we operate…”
With less than a month to go before the political party conference season starts in earnest, the Conservative government has a lot of hearts and minds to win over with latest polls showing that if there was a general election now the Labour Party would enjoy a landslide victory.
With a change in the political regime a distinct possibility, Union Jack Oil Plc (LON:UJO) has been more proactive than usual. The UK-focused onshore oil and gas production development and exploration company will continue to be UK-centric, but like others in the sector, it is looking at other jurisdictions in case a new government is less favourable to the industry.
The old boy scout in executive chairman David Bramhill won’t let him and the board sit on their laurels. “Although the UK is a marvellous place, it wouldn’t be right for us to sit down, do nothing and not look to the future on where could we go, should something seriously happen on the regime here.”
Bramhill says fossil fuels and those involved with them have become pariahs, so more accommodating jurisdictions are being considered.
The UK however has given Union its flagship project the “cash cow” Wressle, and Bramhill references “rich pickings” that remain in the country. “There are some treats around which we could gain entry into which would be very, very nice and hopefully beneficial for shareholders as well.”
Bramhill muses about West Newton. The company is ready to drill this asset predicting it has many sweet spots. “You hit one of those and you’re really seriously at the races.”
In its current state Union has “got some excellent projects” and “a load of money” so there’s no placings on the horizon.
“We’re in a really, really excellent financial position and we’re a small board, and we can manoeuvre quite quickly. We’re quite dynamic in the way we operate.”
In this interview with Sarah Lowther, David also explains how the takeover of partner Egdon by Petrichor will be a good thing.
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The author was remunerated but does not hold shares in the company
