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Union Jack Oil PLC on Monday declared its first special dividend and announced a share buyback programme as its financial position has been "transformed" over the course of the year.
Shares in the Bath-based, UK-focused oil and gas company were trading 15% higher at 28.75 pence each in London on Monday morning.
Union Jack declared a special dividend of 0.8 pence per share, a total payout of £903,000.
The company also confirmed it will implement a share buyback programme, funded from the company's existing cash resources. It will purchase ordinary shares in the open market with timing dependent on market conditions, share price, trading volumes and subject to the company's capital allocation policy.
Shares repurchased will be placed into Treasury. Shares held in Treasury are not entitled to voting rights and dividend payments, nor will they be included in the earnings per share calculation.
Executive Chair David Bramhill said: "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. Our capital allocation and distribution policy and current excess cash position allows us to declare a maiden special dividend and to implement a share buyback programme going forward, while importantly not impeding the company's organic growth potential."
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