The UK Oil & Gas PLC is often referred to as UKOG. It is a British oil and gas exploration company. Indeed, to make informed investment decisions, knowledge of the UKOG share price becomes very essential to investors. In this blog, we will cover some of the basics of UKOG shares, key factors that impact the price of its share, and points that should guide investors in trading or holding UKOG shares.
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UKOG is a UK-based company with interest in oil and gas exploration and production. The company is interested in exploring and using the resources that exist within the onshore regions. UKOG’s main bases are located in the southern part of the UK, in areas such as the Weald Basin, which are going to be the primary focus for oil reserve exploration by the firm. Energy price fluctuations and fluctuating oil exploration affect UKOG share price in a radical manner.
UK Oil & Gas PLC shares are valued by investors as the sum they are willing to pay for the company’s shares. UKOG share price is determined by a combination of factors: performance and market conditions in the external environment, etc.
The following can be considered determinants of UKOG share price
Looking at last UKOG patterns, one can see fluctuations typical for an energy sector exploration company. The share price most often moves in unison with announcements related to oil finds, drilling results, or creating joint ventures with other companies and therefore appears to be quite volatile by itself, given the volatility of the oil market.
UKOG has always moved in tandem with worldwide oil prices. Thus, at the start of the pandemic in 2020 when oil prices crashed, UKOG’s share price crashed along with it. As the oil price stabilized, so did UKOG’s share price.
Prior to investing in UKOG, here is what you need to know:
The UKOG share price is likely to fluctuate. It is a small-cap stock, and hence even relatively minor movements in buying/selling activity would cause substantial price movements for this company. This will tend to be the case for most companies at this stage of exploration.
Oil exploration companies mainly catch the attention of the market when they come up with good drilling results or newly discovered oil. Of course, it creates a spike in the interest level, and the UKOG share price shoots up very fast.
Of course, with excitement there needs to be a responsible balance. Exploration companies such as UKOG can suffer from delays, technical hiccups, or environmental opposition that bring negative news and a share price in decline.
If you are interested in UKOG shares you will want to track the stock’s day to day movements. There are a number of ways to track the UKOG share price:
The stock price for UKOG would be an important aspect for investors who view this firm as a place to invest their money. Many things, such as oil prices, successful exploration, and market sentiment, influence the stock price.
UKOG shares are hence quite viable in terms of their return but carry several risks such as those in the oil market, which is always a bit volatile, and that UKOG is an exploration firm.
Any decision to invest should factor in considerations that may impact the price of UKOG’s shares and ensures it aligns with the general strategic imperative.
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