At the time of writing, shares of Jacka Resources Ltd [ASX:GAS] are up by 66.66%, to 0.005 cents per share. Jacka is a junior oil and gas company listed on the ASX.
Why did Jacka Resources Ltd shares do this?
The company announced that Pura Vida Energy [ASX:PVD] bought 10.91% of the company. The question you need to ask yourself is, why?
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. 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…
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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 months ahead.
The bottom line: if the company turns around by September, the share price could explode!
Resources Analyst, Markets & Money
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