The largest investor in the Wressle oil field, Union Jack Oil, is seeking to enhance its image and attract a wider group of investors by reducing the number of shares in the company.

In a statement this morning, it said was seeking approval to consolidate every 200 existing ordinary shares into one consolidated ordinary share.

It said the move would reduce 19,815,906,400 shares to 99,079,532.

Union Jack said the proposal would:

“enhance the perception of the company and its prospects and help improve the marketability of the company’s shares to a wider group of potential investors.”

The statement said the consolidation would increase the share price – currently at 0.16p – and improve trading activity in the company’s shares. It added:

“The Directors believe that the existing share capital structure is no longer appropriate, as the high number of shares in issue combined with the relatively low price per share is thought to result in excess volatility, reduced liquidity and a widening in the market bid and ask share price spread in the Company’s shares.”

A closed general meeting, on Wednesday 10 March will also seek to change the company’s articles of association to allow future virtual sessions. Shareholders will not be allowed to attend the meeting in person.

In June 2020, Union Jack became the largest single investor in the Wressle oil site near Scunthorpe with a 40% stake. In January 2021, it raised its stake in the Biscathorpe project in Lincolnshire to 45%.