At the time of writing, shares of Jacka Resources Ltd [ASX:GAS] are up by 33.33%, now trading at 0.005 cents per share. Jacka is a junior oil and gas company listed on the ASX.
Why did Jacka Resources Ltd share price do this?
Earlier in the month, the company announced that Pura Vida Energy [ASX:PVD] bought 10.91% of the company. The question you need to ask yourself is, why? Pura Vida gave us an answer last week (my emphasis added),
‘Pura Vida Energy…has made a market release for a substantial shareholding in Jacka Resources Limited (ASX: JKA). The outlined shareholding is 112,944,364 ordinary shares or 14.7% of the total shares issued in JKA and based on substantial holder notices lodged with ASX, Pura Vida is now the largest shareholder of JKA.
‘Pura Vida’s Chairman Mr Bevan Tarratt has subsequently joined the JKA board as a Non- Executive Director. JKA is a company that has an interest in an oil and gas exploration project in Africa and is looking for new project opportunities.’
What now for Jacka Resources Ltd?
Jacka Resources is an ultra-high-risk, high-reward company. It doesn’t really have any good projects at the moment, which makes it interesting. That’s why it received a notification from ASX on 21 March. The ASX said Listing Rule 12.1 would be applied if, in ASX’s opinion, the company’s operations no-longer warrant the continued quotation of its securities.
Put differently, Jacka could be on the verge of being de-listed from the ASX.
Will it happen?
I doubt it…
Jacka has until late September to demonstrate it’s in compliance with Listing Rule 12.1. I believe that will happen. And, by the looks of it, so does Pura Vida Energy ― the company clearly sees something valuable with Jacka Resources, which is why it’s buying a truck load of shares.
Perhaps, it’s the company’s Somaliland lease…
But, the story should come out in the weeks ahead.
The bottom line: if the company turns around by September, the share price could explode!
Resources Analyst, Markets & Money
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