REG - Union Jack Oil PLC - Final Results for the Year Ended 31 December 2024
19/05/2025 07:00
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RNS Number : 1170J Union Jack Oil PLC 19 May 2025
This announcement contains inside information for the purposes of Article 7 of
the Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic law
by virtue of the European Union (Withdrawal) Act 2018 ("MAR"), and is
disclosed in accordance with the Company's obligations under Article 17 of
MAR.
19 May 2025
Union Jack Oil plc
("Union Jack" or the "Company")
Final Results for the Year Ended 31 December 2024
Notice of AGM
Union Jack Oil plc (AIM: UJO) (OTCQB: UJOGF), a profitable UK and USA focused
onshore hydrocarbon production, development, exploration and investment
company, is pleased to announce its audited results for the year ended 31
December 2024.
Copies of the Company's Annual Report will be posted to shareholders on or
before 26 May 2025 and will be available on the Company's website:
www.unionjackoil.com. The Company's AGM will be held in the George White Suite
at The Bristol Hotel, Prince Street, Bristol BS1 4QF on Friday 27 June 2025 at
11.00 a.m.
Operational Highlights
• Wressle Competent Person's Report ("CPR") upgrades 2P Reserves by
263%
• West Newton Carbon Intensity Study given AA rating by GaffneyCline
Associates
• Successful Andrews 1-17 and Andrews 2-17 oil and gas discovery wells
in Oklahoma, USA, now in commercial production
• The Taylor 1-16 well in Oklahoma awaiting completion of the Hunton
and Cromwell formations
• Commencement of the UK onshore Keddington Oilfield upgrade
• Acquisition of a 45% interest in the Rogers Secondary Recovery Project
in Oklahoma, with post balance sheet positive results seen in pressure build
up
• Further acquisition of revenue generating Mineral Royalty packages in
the Bakken Shale, Permian Basin and Eagle Ford Shale, USA, delivering pleasing
returns in excess of 25% on original investment
• Post Balance Sheet date, successful Moccasin 1-13 oil discovery in
Oklahoma, now in production from the 1st Wilcox formation with two further
oil-bearing formations to be completed
Financial Highlights
• Gross profit of £1,968,101 (2023: £3,298,844)
• Net profit of £649,213 (2023: £859,089)
• Basic earnings per share 0.61 pence (2023: 0.79 pence)
• Oil and gas revenues £3,929,722 (2023: £5,065,679)
• The Company continues to be debt free
David Bramhill, Executive Chairman, commented:
"The Board's confidence has once again been supported by the Company's
profitable 2024 financial results, confirming its resilience, both financially
and operationally.
"In the UK, Union Jack will remain focused on the development of its flagship
project, Wressle, where the Operator and Joint Venture partners have
high-value appraisal and development programmes planned for the future, in
particular the unlocking of the material proven reserves of oil and gas that
remain in place within the Penistone Flags formation. The Board is confident
that within the Wressle development there remains significant upside which
will support the Company with revenues for at least another decade.
"I also look forward to progress at West Newton. Encouragingly, the results
from this key project, to date, signal a potentially highly valuable onshore
project with resources comparable to those usually reported offshore. A
significant onshore domestic gas resource, as indicated at West Newton, has
the potential to become an important transition fuel in helping the UK achieve
its 2050 Net Zero emissions target.
"At time of writing, Keddington is expected to be, following site upgrades,
close to being operational and poised to deliver the Company additional
revenues.
"Union Jack's initial success in the USA over the past 12 months, highlights
the ease of entry and ability to execute our business in that country,
justifying the Board's decision to seek further growth opportunities
internationally to bolster the Company's robust production and appraisal
assets in the United Kingdom.
"Our appetite for additional growth opportunities has been whetted by our
recent positive experiences in the USA and discussions are at an advanced
stage with Reach in respect of expanding our activities over the coming months
and beyond.
"I believe the Board's optimism in our further expansion in the USA, executed
alongside a proactive drilling and development campaign, will deliver material
rewards in due course.
"I am confident that the increase in drilling, appraisal and development
activity being evaluated in the pursuit of growth from our balanced UK and USA
portfolios has the potential for notable value creation for shareholders. We
believe our heightened activity and the expected additional news-flow
generated, combined with effective investor engagement on both sides of the
Atlantic, will continue to attract the ongoing support of our existing
shareholders and the attention of new investors, broadening the appeal of the
Company to a wider audience.
"The Company retains a strong Balance Sheet and a clear focus on the
development of its assets both in the UK and the opportunity-charged USA. This
includes a balanced portfolio of Mineral Royalties, along with the production
assets that are now assembled, that are expected to contribute meaningful
revenue and growth opportunities going forward.
"I take this opportunity to thank our shareholders for their continued
support, as well as my co-directors and advisers, both in the UK and USA, all
of whom continue to contribute towards the development and growth of the
Company.
"The future of Union Jack remains bright."
For further information, please contact
Union Jack Oil plc info@unionjackoil.com
David Bramhill
SP Angel Corporate Finance LLP +44 (0)20 3470 0470
Nominated Adviser and Joint Broker
Matthew Johnson
Richard Hail
Jen Clarke
Zeus Capital Limited +44 (0)20 3829 5000
Joint Broker
Antonio Bossi
Simon Johnson
James Hornigold
Gneiss Energy +44 (0)20 3983 9263
Limited
Financial Adviser
Jon Fitzpatrick
Paul Weidman
Harbour +1 (475) 477 9402
Access
USA Investor Relations
Jonathan Paterson
In accordance with the AIM Rules - Note for Mining and Oil and Gas Companies,
the information contained within this announcement has been reviewed and
signed off by Graham Bull, Non-Executive Director, who has over 48 years of
international oil and gas industry exploration experience. This announcement
contains certain forward-looking statements that are subject to the usual risk
factors and uncertainties associated with the oil and gas exploration and
production business. While the directors believe the expectations reflected
within this announcement to be reasonable in light of the information
available up to the time of approval of this announcement, the actual outcome
may be materially different owing to factors either beyond the Company's
control or otherwise within the Company's control, for example, owing to a
change of plan or strategy. Accordingly, no reliance may be placed on the
forward-looking statements.
Evaluation of hydrocarbon volumes has been assessed in accordance with 2018
Petroleum Resources Management System (PRMS) prepared by the Oil and Gas
Reserves Committee of the Society of Petroleum Engineers (SPE) and reviewed
and jointly sponsored by the World Petroleum Council (WPC), the American
Association of Petroleum Geologists (AAPG), the Society of Petroleum
Evaluation Engineers (SPEE), the Society of Exploration Geophysicists (SEG),
the Society of Petrophysicists and Well Log Analysts (SPWLA) and the European
Association of Geoscientists & Engineers (EAGE).
CHAIRMAN'S STATEMENT
I am delighted to present to the shareholders of Union Jack Oil plc ("Union
Jack" or the "Company"), a profitable onshore UK and USA focused hydrocarbon
production, development and investment Company, the Annual Report and
Financial Statements for the year ended 31 December 2024.
Having been originally UK onshore focused, I reflect on the past 12 months
with satisfaction, having pursued an additional cash flow driven growth
strategy, concentrated in the USA to complement our excellent revenue
generating onshore projects in the United Kingdom, namely Wressle and
Keddington.
During a relatively short period, this strategy has delivered excellent
results and offers further catalysts for growth that provide me with
confidence in the future of Union Jack.
In Oklahoma, USA, where our drilling activities are focused, the oil industry
remains central to its economy, with new drilling technologies revitalising
and unlocking new resources, making the state a top US hydrocarbon producer.
Our geographic expansion and strategic partnership in the United States with
our very capable drilling partner Reach Oil & Gas Inc. ("Reach"), is
already contributing revenues from a portfolio of US onshore production and
development assets. We are delighted to have now drilled four exploration
wells with a 100% success rate. In addition, we have also selectively expanded
our US portfolio of revenue-generating, high-return Mineral Royalties.
The financial and operational results for 2024 are positive, with the Company
remaining profitable for the third consecutive year, free of debt and in
possession of a balanced work programme of potentially transformational
development and drilling activities, encompassing both sides of the Atlantic.
Profitability continued throughout the period under review, thanks mainly to
the cash flow from our 40% interest in the exceptional UK flagship project,
Wressle. This development continues to produce at the top end of the CPR
production profile forecast and from which revenues continued to bolster the
Company's Balance Sheet, enabling Union Jack to announce a net profit.
Additionally, revenues from our rapidly expanding activities in the USA for
the full year contributed to our bottom line.
The ERC Equipoise Limited ("ERCE") CPR in respect of Wressle and Broughton
North, announced in January 2024, matched our high expectations, demonstrating
a 263% increase in 2P Reserves to 2.373 million barrels of oil equivalent
("boe") gross, adding significant additional value to a material project
within Union Jack's production and development portfolio within the UK.
West Newton, another key onshore project within Union Jack's portfolio, with
impressive Contingent Resources reported within the RPS Group Limited ("RPS")
CPR, is expected to see future activity.
A further UK based project, Keddington, where Union Jack holds a 55% interest,
has been the subject of material upgrades and is in readiness for resumption
of production in the near future.
The decision made to seek further growth opportunities in the USA, where
operations can be executed unhindered and a sensible and fair tax policy is
applied, was a correct one. Union Jack's relationship with Reach, based in
Oklahoma, has grown over the past year and our Joint Ventures with highly
engaged partners have prospered, especially with the success of the Moccasin
1-13 well, post Balance Sheet date.
During 2024, Union Jack entered into a number of Joint Ventures with Reach to
drill wells in Oklahoma. The first two wells drilled on the 45% held West
Bowlegs Prospect, the Andrews 1-17 and the Andrews 2-17, now named the Andrews
Field, are predominantly gas producers, penetrating the primary objective, the
Hunton Limestone, one of the main hydrocarbon reservoirs in Oklahoma.
The Board has high expectations of Union Jack's USA ventures, guided by both
Reach's
and Union Jack's very able technical teams, already confirmed by the success
of the Moccasin 1-13, Andrews 1-17, Andrews 2-17 and Taylor 1-16 discoveries.
Following this initial success, Union Jack and Reach are in the process of
identifying a number of additional material drilling targets that could
deliver a dynamic drilling campaign for the future, with a range of risks and
reserves across Southern Oklahoma.
Additional information on the Company's projects within the UK and USA can be
found within the Operational Review.
CORPORATE AND FINANCIAL
The 12 month period under review has, for the third consecutive year, seen
Union Jack remain a cash generating and profitable entity.
Revenues from oil and gas sales of £3,929,722 (2023: £5,065,679) reported
for the period continued to have a positive effect on the Income Statement,
resulting in the Company being able to report a gross profit of £1,968,101
(2023: £3,298,844), and net profit of £649,213 (2023: £859,089).
Basic Earnings per share of 0.61 pence were reported (2023: 0.79 pence).
The Company has a policy of returning cash to shareholders when deemed
appropriate.
Since the commencement of our dividend policy and share buy-back programme,
approximately £3,000,000 has been returned to shareholders.
The Company holds 6,300,000 ordinary shares in Treasury which increase the
Earnings Per Share, hold no voting rights and are not entitled to a dividend
payment.
To increase the Company's corporate visibility in the USA, in April 2024,
Union Jack's ordinary shares were admitted to trading on the OTCQB Venture
Market (Ticker: UJOGF). The Board believes that dual trading of the Company's
shares on AIM and the OTCQB will provide enhanced investor benefits, which
include easy trading access for investors based in the USA and increased
liquidity, due to a broader geographic pool of potential investors.
Ray Godson made the decision to step down from the Board of Union Jack at the
2024 AGM and Craig Howie joined the team as an independent non-executive
director during April 2024. Craig has over 20 years of City and advisory
experience, especially within the oil industry and is well known within his
peer group in respect of his knowledge of oil enterprises, both junior and
major.
Further information can be found on the Company's website
www.unionjackoil.com, presenting detailed technical information on Union
Jack's projects and designed to inform shareholders and attract new investors
to the Company.
In addition, Union Jack hosts a growing and active X account @unionjackoilplc.
OUTLOOK
The Board's confidence has once again been supported by the Company's
profitable 2024 financial results, confirming its resilience, both financially
and operationally.
In the UK, Union Jack will remain focused on the development of its flagship
project, Wressle, where the Operator and Joint Venture partners have
high-value appraisal and development programmes planned for the future, in
particular the unlocking of the material proven reserves of oil and gas that
remain in place within the Penistone Flags formation. The Board is confident
that within the Wressle development there remains significant upside which
will support the Company with revenues for at least another decade.
I also look forward to progress at West Newton. Encouragingly, the results
from this key project, to date, signal a potentially highly valuable onshore
project with resources comparable to those usually reported offshore. A
significant onshore domestic gas resource, as indicated at West Newton, has
the potential to become an important transition fuel in helping the UK achieve
its 2050 Net Zero emissions target.
At time of writing, Keddington is expected to be, following site upgrades,
close to being operational and poised to deliver the Company additional
revenues.
Union Jack's initial success in the USA over the past 12 months, highlights
the ease of entry and ability to execute our business in that country,
justifying the Board's decision to seek further growth opportunities
internationally to bolster the Company's robust production and appraisal
assets in the United Kingdom.
Our appetite for additional growth opportunities has been whetted by our
recent positive experiences in the USA and discussions are at an advanced
stage with Reach in respect of expanding our activities over the coming months
and beyond.
I believe the Board's optimism in our further expansion in the USA, executed
alongside a proactive drilling and development campaign, will deliver material
rewards in due course.
I am confident that the increase in drilling, appraisal and development
activity being evaluated in the pursuit of growth from our balanced UK and USA
portfolios has the potential for notable value creation for shareholders. We
believe our heightened activity and the expected additional news-flow
generated, combined with effective investor engagement on both sides of the
Atlantic, will continue to attract the ongoing support of our existing
shareholders and the attention of new investors, broadening the appeal of the
Company to a wider audience.
The Company retains a strong Balance Sheet and a clear focus on the
development of its assets both in the UK and the opportunity-charged USA. This
includes a balanced portfolio of Mineral Royalties, along with the production
assets that are now assembled, that are expected to contribute meaningful
revenue and growth opportunities going forward.
I take this opportunity to thank our shareholders for their continued support,
as well as my co-directors and advisers, both in the UK and USA, all of whom
continue to contribute towards the development and growth of the Company.
The future of Union Jack remains bright.
David Bramhill
Executive Chairman
16 May 2025
OPERATIONAL REVIEW
WRESSLE DEVELOPMENT PEDL180 AND PEDL182 (40%)
Wressle is located in Lincolnshire, on the western margin of the Humber Basin
and is one of the most productive conventional producing onshore oilfields in
the UK.
The Wressle-1 ("Wressle") discovery was defined on proprietary 3D seismic
data. The structure is on trend with the Crosby Warren oilfield and the
Broughton North Prospect, both located to the immediate northwest and the
Brigg-1 discovery to the southeast. These wells contain hydrocarbons in
several different sandstone reservoirs within the Upper Carboniferous
succession. The majority of the Broughton North Prospect is covered by the
same 3D seismic survey to that of the Wressle field.
Since the proppant squeeze and coiled tubing operations conducted during
August 2021, Wressle has established itself as Union Jack's key project with
initial production rates far exceeding original expectations. Wressle has
generated revenues in excess of US$23,000,000 net to Union Jack before taxes,
allowing the Company to be self-sustaining for almost four years. To date,
over 700,000 barrels of high-quality oil have been produced and sold from
Wressle.
During the period, Wressle produced on constrained flow an average of 416
barrels of oil per day ("bopd"), Union Jack net 166.4 bopd.
• Average oil price of US$80.76
• Average water cut of 32%
• Site downtime of 14 days
Water produced is easily managed and disposed of at a nearby facility.
Production during 2023 was at the higher rate, however, due to initial water
breakthrough a down-hole jet pump was installed which operates within
regulatory controls.
In early January 2024, the Joint Venture partnership published the results of
a CPR compiled by ERCE for Wressle and Broughton North Prospect.The highlights
of this CPR are as follows:
• 263% increase in 2P Reserves
• Reclassification of 1,883 mboe in Penistone Flags Contingent
Resources to 2P Reserves
• 59% upgrade to the Ashover Grit and Wingfield Flags Estimated
Ultimate Recoverable
• 23% upgrade to Broughton North Prospective 2U Resources
CPR Wressle Gross Oil and Gas Reserves (mboe)
Category Gross Reserves
1P 2P 3P
2016 CPR 303 655 1,356
Added - - -
Produced to 30 June 2023 (519) (519) (519)
Revisions 258 354 403
Reclassified 864 1,883 3,647
2023 CPR 906 2,373 4,887
Reserves Change 199% 263% 261%
Note: One barrel of oil equivalent ("boe") is equal to 5,714 standard cubic
foot ("scf") of natural gas
CPR Broughton North Gross Oil and Gas Prospective Resources (mboe)
Category Gross Unrisked Prospective Resources
1U 2U 3U
2016 CPR 180 494 1,156
Added - - -
Produced to - - -
30 June 2023
Revisions 33 114 376
Reclassified - - -
2023 CPR 213 608 1,532
Planning consent was received for the development plan during September 2024,
which included the drilling of two new wells and the installation of a gas
pipeline and processing equipment. However, the North Lincolnshire Council's
decision to grant planning was subsequently rescinded following a third-party
challenge in light of the Finch Supreme Court judgement.
The Operator, Egdon Resources U.K. Limited, on behalf of the Joint Venture
partners, has subsequently completed the newly required Scope 3 emissions
report such that the planning application for further development of the
Wressle field can be re-assessed.
The Board believes that the Company's interest in Wressle will continue to
deliver significant revenues for at least the next decade. The Board looks
forward to the remainder of 2025 and beyond with enthusiasm and expect to
crystallise the additional value of this primary asset as soon as the required
approvals are received.
WEST NEWTON DEVELOPMENT PEDL183 (16.665%)
PEDL183 is located onshore UK, north of the River Humber, encompassing the
town of Beverley, East Yorkshire. The licence area is within the western
sector of the Southern Zechstein Basin.
The West Newton A-2 and B-1Z drilling programmes have yielded substantial
hydrocarbon discoveries within the Kirkham Abbey formation.
The table below notes the West Newton gross unrisked technically recoverable
sales volumes as calculated by independent engineers RPS Group Limited ("RPS")
in late 2022.
Category Gross Technically Recoverable
Gas (bcf) Liquids (mbbl)
1C 99.7 299.4
2C 197.6 593.0
3C 393.0 1,178.9
Laboratory reports confirm that the hydrocarbon-bearing Kirkham Abbey
reservoir is extremely sensitive to aqueous fluids and that previous drilling
of the West Newton wells with water-based mud had created near well-bore
damage, affecting the natural porosity and permeability of the formation,
which in turn had a detrimental effect on its ability to flow. Further
analyses have concluded that the use of dilute water-based acids during well
testing would have also affected the flow characteristics of the Kirkham Abbey
reservoir.
A Gas Export feasibility study was undertaken and completed during Q2 2024 by
independent energy consultants CNG Services Limited ("CNG").
CNG concluded that an initial single well development and gas export plan is
economically and technically feasible, allowing for advanced production and
cash flow with relatively modest capital expenditure.
First gas production is planned to be from a single horizontal well, processed
through a modular plant, tied in from the West Newton A site to the National
Transmission system via an overground pipeline.
The North Sea Transition Authority ("NSTA") has approved a revised work
programme for PEDL183, allowing progress in the most efficient manner.
The revised minimum work programme is subject to regulatory and other
approvals.
Expectations are that the Joint Venture partners will approve the recompletion
of the A2 well as this is deemed the best low-risk and low-cost approach to
de-risk the project.
Commercial gas production could be brought to market within months of a
successful well test whilst additional activity is carried out on the further
development of West Newton.
The Operator, Rathlin Energy, has been informed by the Environment Agency that
its application on behalf of the Joint Venture partners has been 'Duly Made'
and further updates will be provided in due course.
GaffneyCline Associates, an international petroleum consultancy has compiled a
Carbon Intensity Study in respect of the gas resource at West Newton resulting
in an AA Rating, the lowest possible carbon intensity grade on that company's
rating scale, for its potential gas and upstream production.
Union Jack believes investors will only wish to provide finance to companies
and projects that support a transition to a low-carbon economy. As part of the
Company's ongoing strategy in respect of the environment, Union Jack commits
to be totally transparent in respect of its projects and on how its carbon
management practice is implemented.
The Joint Venture partners continue to plan the most efficient and economic
method to convert the impressive West Newton Contingent Resource into a viable
hydrocarbon development within an acceptable time frame.
A future West Newton development will benefit from being located in an area
that provides access to substantial local infrastructure and could deliver
significant volumes of onshore low-carbon sales gas into the UK's energy
market.
KEDDINGTON PEDL005(R) (55%)
The Keddington oilfield is located along the highly prospective East Barkwith
Ridge, an east-west structural high on the southern margin of the Humber
Basin.
During 2024, a major upgrade of the site's production facilities and bund area
was undertaken and is planned to reach completion during May 2025. Production
from Keddington will be reinstated in the very near future where oil
production rates and reliability are anticipated to increase dramatically,
especially with early flush production expected.
A technical review by the Operator has confirmed that there remains an
undrained oil resource located on the eastern side of the Keddington field.
Planning consent for further drilling is already in place, presenting an
opportunity to increase production via a development side-track from one of
the existing wells.
To facilitate confirmation of the target definition and well design planning,
re-processing of legacy 3D seismic data has been completed.
The Operator's modelling indicates that infill drilling is forecast to improve
recovery from the Keddington field by between 113,000 to 183,000 barrels of
oil, depending on the reservoir permeability model selected and the
combination of infill targets.
The sub-surface target of a step-out well has been identified and it is
planned to drill the well, where planning consent is already granted, when
macro-economic conditions are favourable.
BISCATHORPE PEDL253 (45%)
PEDL253 is situated within the proven hydrocarbon fairway of the South Humber
Basin and is on-trend with the Keddington oilfield and the Saltfleetby
gasfield.
While drilling the Biscathorpe-2 well, there were hydrocarbon shows, elevated
gas readings and sample fluorescence observed over the entire interval from
the top of the Dinantian to the total depth of the well, with 68 metres being
interpreted as being oil-bearing.
Independent consultants APT also conducted analyses, confirming a hydrocarbon
column of 33-34 API gravity oil, comparable with the oil produced at the
nearby Keddington oilfield.
Further evaluation of the results of the Biscathorpe-2 well, together with the
reprocessing of 264 square kilometres of 3D seismic, indicate a potentially
material and commercial hydrocarbon resource that remains to be appraised.
A side-track well is planned, targeting the Dinantian Carbonate where the
Operator has assessed, in accordance with the PRMS Standard, a gross Mean
Prospective Resource of 2.55 million barrels of oil ("mmbbl"). The overlying
Basal Westphalian Sandstone has the potential to add gross Mean Prospective
Resources of 3.95 mmbbl. Economic modelling demonstrates that the Westphalian
target remains economically robust in the current oil price environment.
During November 2023, the Planning Inspectorate upheld the appeal against the
refusal of planning permission by Lincolnshire County Council for a side-track
drilling operation, associated testing and long-term oil production at the
Biscathorpe-2 wellsite.
Due to the ramifications of the 'Finch Case' the successful planning appeal
decision was overturned following a judicial review and the Planning
Inspectorate is arranging a new appeal process.
Union Jack's technical team believe that Biscathorpe remains one of the
largest unappraised conventional onshore discoveries within the UK.
NORTH KELSEY PEDL241 (50%)
North Kelsey is a conventional oil exploration prospect on trend with, and
analogous to Wressle. The prospect has been mapped from 3D seismic data and
has the potential for oil in four stacked Upper Carboniferous reservoir
targets.
The Operator, Egdon Resources U.K. Limited has recently completed an updated
resource assessment for the North Kelsey prospect. This work is pending review
by Union Jack.
Should the Joint Venture partners decide to drill an exploration well, a new
planning application will be submitted to Lincolnshire County Council to
enable the prospect to be drilled to assess the resource potential.
OTHER LICENCE INTERESTS
Union Jack has interests in a small number of other non-core projects, EXL294
Fiskerton Airfield and PEDL209 Laughton, where its interests in these licences
have all been fully impaired.
Fiskerton Airfield (EXL294) is currently shut in. Longer term potential for
the site is to manage produced water through the existing water injection well
on site.
During the year, PEDL118 Dukes Wood and PEDL203 Kirklington were relinquished
and the Company is in the process of relinquishing PEDL209.
UNITED STATES OF AMERICA STRATEGIC GROWTH AND EXPANSION PLAN
For numerous reasons, including the punitive Energy Profit Levy of 38% imposed
on profits generated within the UK and totally unacceptable planning delays,
the Board commenced the execution of a plan to seek growth opportunities in
regimes with sympathetic views towards the hydrocarbon industry, without
compromising global environmental objectives and the aim of achieving net zero
emissions by 2050.
The Board of Union Jack saw significant potential for growth in the USA and in
late 2023 embarked on a programme of rapid expansion where in the timeframe of
just over one year the Company has:
• Material ownership stakes in numerous drilling, development and
production projects
• Formed a drilling partnership with Reach
• Built a quality, cash generating, Mineral Royalty portfolio in the
Permian Basin, Bakken Shale and Eagle Ford Shale
• Material cash flows from operations
• Formed relationships with an excellent team of advisers
Union Jack's drilling partners Reach, established in 2018, are a quality,
accredited private company operating numerous oil and gas producing facilities
in Seminole and Pottawatomie Counties in Oklahoma, USA.
Reach was formed by Miles Newman and Isabel Davies, successful explorationists
with prominent O&G experience and Jim McKenny, a hydrocarbon expert
specialising in advanced seismic acquisition and processing in the US
mid-continent.
Union Jack harbours enterprising plans in the USA going forward with its
partnership with Reach.
WEST BOWLEGS PROSPECT ANDREWS 1-17 AND ANDREWS 2-17 DISCOVERY WELLS OKLAHOMA -
THE ANDREWS FIELD (45%)
During January 2024, the Company signed a farm-in agreement with Reach to
acquire a 45% interest in the West Bowlegs Prospect, located in Seminole
County, Oklahoma, USA, on which two exploration wells were successfully
drilled and are now known as the Andrews Field ("Andrews").
Andrews, comprising of the Andrews 1-17 and Andrews 2-17 discovery wells,
drilled and completed during 2024, are predominantly gas producers with
associated oil from the Hunton Limestone formation ("Hunton"), one of the main
hydrocarbon reservoirs in Oklahoma.
The Hunton, the primary objective for the Andrews wells, is a prolific,
producing hydrocarbon reservoir in Oklahoma, which is unconformably overlain
by the main oil-prone rock, the Woodford Shale.
The Andrews wells confirmed the presence of the primary objective, showing
high porosity with elevated gas readings with good reservoir qualities being
interpreted on the wireline logs. Subsequently both wells were completed and
put onto production.
Since the commencement of production, the Andrews Field has produced and sold
over 50,000,000 cubic feet of clean natural gas and 10,000 barrels of
high-quality oil with an average API of 45.5 degrees.
In-house assessment of gas reserves by the Operator, Reach, is that over 1.2
billion cubic feet of recoverable gas remain in place with an estimated field
life of approximately 20 years.
OPEX costs associated with Andrews are remarkably low, currently at
approximately US$3,500 per month, translating into production costs of less
than US$5 per barrel of oil equivalent ("boe") and driving healthy operating
netbacks.
The West Bowlegs drilling, the Company's first operating venture in the USA,
was a commercial success and an excellent start for Union Jack in its initial
enterprise with Reach and met the Board's criteria of acquiring material
interests in near-term, low-cost drilling projects being capable of quickly
adding cash-flow.
MOCCASIN 1-13 DISCOVERY (45%)
The Moccasin 1-13 well ("Moccasin"), located in Pottawatomie County, Oklahoma
and declared a commercial discovery was drilled to Total Depth of 5,690 feet
to test a dip and fault closed structure, mapped from 3D seismic, downthrown
on the west side of the Wilzetta Fault.
Moccasin was an untested structural prospect with several targets, both
primary and secondary. The structure was a compressive feature, associated
with the Wilzetta Fault. This strike slip-fault was active through the
Ordovician to early Carboniferous periods and is responsible for several large
oil accumulations. The Woodford Shale, the main source for light oil across
the region, is present within the Moccasin structure and between the primary
reservoir targets.
Several potential oil-bearing intervals were highlighted on electric logs as
hydrocarbon bearing following appraisal.
The primary objective, the 1st Wilcox formation, was perforated, tested and
confirmed as a significant oil producer.
Initial open hole average flow rate was over several test periods and a number
of days was recorded at 25.88 barrels of oil per hour, equating to over 600
barrels of oil per day.
Moccasin is currently being evaluated and is on test production, producing at
a highly constrained rate of circa 80-100 barrels of oil per day, prior to
determining the rate for maximum ultimate oil recovery.
Permanent production facilities have been installed, comprising oil storage
tanks, separator and flowlines and light crude oil with an API of 32 degrees
is being sold. To date, over 3,000 barrels of oil have been produced and sold
whilst testing.
Two other secondary zones, the Red Fork and the Bartlesville Sandstones will
be perforated and tested in due course.
Based on current flow rates, Moccasin is expected to provide material revenues
to the Company going forward.
The success of Moccasin has opened a raft of new and compelling opportunities
in Oklahoma for the Company.
WILZETTA FAULT PLAY AND DRILLING IN OKLAHOMA (75%)
The Company signed a farm-in agreement with Reach to acquire a 75% interest in
a high-impact well, Diana-1, planned to be drilled at a future date to test
the Footwall Fold Prospect in the Wilzetta Fault play, a proven oil producing
location and in an area of associated interest.
The prolific Wilzetta Fault plays are the sites of numerous oilfields across
Central Oklahoma which include:
• North-East Shawnee field, three miles south of the Prospect, which
has produced more than 5,800,000 barrels of oil to date
• West Bellmont field, adjacent to the Prospect, which has produced
more than 580,000 barrels of oil to date
• Arlington Field, ten miles north-east of the Prospect, which has
produced more than 1,800,000 barrels of oil to date
Typical wells drilled in the Wilzetta Fault can produce approximately 250
barrels of oil per day providing pay-back within three months.
The Diana-1 well will be drilled to a depth of 6,000 feet where the prospect
integrity is supported by recently reprocessed 3D seismic data.
ROGERS SECONDARY RECOVERY PROJECT (45%)
The Rogers enhanced oil recovery project is located approximately two
kilometres from the Andrews Field and is planned to materially increase
delivery from the S&M and Rogers, two legacy production wells.
Base-case secondary recovery volumes calculated by the Operator, Reach,
suggest that up to a further 124,000 barrels of oil can be recovered. Union
Jack believes the project economics are attractive, indicating future gross
revenues at prevailing oil and gas prices of approximately US$5.0 million with
a remarkable IRR approaching 60%.
Water produced from the Andrew 1-17 well is being injected into the Coker well
and reservoir pressure is being rebuilt. Signs are encouraging with a small
amount of oil and gas having been recovered.
TAYLOR 1-16 WELL (45%)
The Taylor 1-16 well ("Taylor"), located in Seminole County, Oklahoma, was
drilled to a Total Depth of 4,577 feet and encountered the Hunton, Misner and
Cromwell Sand formations.
The Cromwell was perforated and returned oil which has been sold to market. To
enhance production, the well will need to undergo a hydraulic fracturing
operation.
The Hunton, following perforation was confirmed to be oil bearing and lifting
measures for production are being considered.
Going forward, work will be carried out on the Cromwell later in 2025 and the
Hunton will be added back to production in due course.
MINERAL ROYALTIES
During late 2023 and early 2024, Union Jack acquired six quality Mineral
Royalty packages, all brokered by the Company's Oklahoma based agent and
adviser, Reach.
The Mineral Royalties portfolio delivered attractive returns in excess of 25%
by contributing revenues of £196,737 in 2024 (£35,142 in 2023) based on a
capitalised value of £783,219 at year end 2025 (£679,524 in 2023).
The general attractions of USA Mineral Royalties include:
• Exposure to active and productive basins and some of the largest
operators in the USA
• Monthly income with no development or operating costs
• Ownership in perpetuity, with no forward liabilities or obligations
• Royalties estimated to have a long economic life, in some cases more
than 26 years and an IRR in excess of 25% during 2024
The Mineral Royalties assembled to date are summarised below:
• Cronus Unit, containing a 25 well package in the Permian Basin, Midland
County, Texas, (effective date December 2023); the property is comprised of
nine Chevron and 16 XTO (a subsidiary of Exxon) operated wells
• COG Operating LLC (a subsidiary of ConocoPhillips) operated Powell
Ranch Unit, consisting of 15 wells in the Permian Basin, Upton County, Texas
(effective date November 2023); the property is comprised of seven horizontal
and eight vertical wells
• Occidental operated Palm Springs Unit, containing 10 horizontal wells
in the Permian Basin, Howard County, Texas (effective date January 2024)
• Bakken Shale, a diversified 96 well interest package, located in Dunn,
McKenzie and Williams Counties, North Dakota. Quality Operators include
Burlington Resources, Continental and Hess (effective date March 2024)
• Permian Basin, an eight well producing unit, located in Howard and
Borden Counties, Texas. Operated by Vital Energy Inc, a quoted, Permian Basin
focused entity, based in Tulsa, Oklahoma (effective date March 2024)
• Eagle Ford Shale, a nine producing horizontal well package, located
in DeWitt County, Texas, operated by ROCC Operating (effective date March
2024)
The Mineral Royalties also provide additional upside as new wells are
completed and drilled on the properties at no cost to Union Jack. Chevron, one
of the operators, has publicly stated their commitment to expanding activities
in the Permian Basin.
The operators associated with the Royalties are all major producers, ranking
highly in the S&P Global (formerly Standard & Poor's), Fitch, and
Moody credit ratings.
The Company's intent is to expand its Mineral Royalty portfolio as and when
appropriate acquisition opportunities arise.
USA CORPORATE GROWTH AND ADVISERS
Union Jack's corporate growth in the USA during the past 12 months has been
noteworthy, marked by planned strategic expansion and the assembly of balanced
production, development and exploration assets in Oklahoma, leveraging on the
regional proficiency of its partners, Reach.
The appointment of key advisers in the Company's area of hydrocarbon
operations is essential. As Union Jack expands its presence in the USA, an
integral part of the Company's broader strategy to enhance its operational
abilities and expand its influence within the industry is to appoint a
combined selection of like-minded professionals to assist a smooth passage as
it delivers growth in the USA.
To date, Union Jack has appointed a number of advisers, all of whom bring
specialised knowledge and insights that align with its long-term vision of
innovation, sustainable growth and adaptability.
By integrating its advisers' expertise into the decision making framework, the
Board is of the belief that these appointments underscore its proactive
approach to navigating the Company's corporate presence in the USA and
maximise the potential for continued success.
STRATEGIC REPORT
STRATEGY
The Company's strategy is the appraisal and development of the licence
interests currently owned in the United Kingdom and United States of America.
BUSINESS REVIEW
Union Jack Oil plc is a UK registered company, focused on the exploration and
future development of the hydrocarbon project interests held by the Company
within the UK and the USA.
A review of the Company's operations during the year ended 31 December 2024
and subsequent to the date of this report is contained in the Chairman's
Statement, Operational Review and the Strategic Report.
The gross profit for the year amounted to £1,968,101 (2023: £3,298,844),
The net profit for the year amounted to £649,213(2023: £859,089).
The profit for the year includes impairments to Property, Plant and Equipment,
of which total costs are £10,148 (2023: £56,829). The 2024 impairments are
in relation to EXL294.
Administrative expenses, excluding impairment costs, amounted to £1,878,089
(2023: £2,057,506).
Cash and cash equivalents at year end amounted to £2,527,831 (2023:
£5,198,303).
Total Assets at year end amounted to £23,846,105(2023: £24,176,606).
Non-current assets at year end amounted to £20,451,145 (2023: £17,431,036).
Intangible Assets totalled £12,417,818 (2023: £10,905,630).
Tangible assets totalled £7,691,397 (2023: £5,888,456).
Of the asset figures above, the net effect is a reduction in capital due to a
dividend payment.
The Company's Income Statement reports revenues of £3,929,722 (2023:
£5,065,679) in respect of production income.
During February 2024, a farm-in agreement was announced with Reach to drill
the West Bowlegs Prospect in Oklahoma, USA.
In February 2024, the Company acquired a 75% working interest in the Wilzetta
drilling project comprising the Diana-1 well in Oklahoma, USA.
During March 2024, the Company acquired Mineral Royalty packages located
within the Bakken Shale, North Dakota, Permian Basin, Texas and the Eagle Ford
Shale Texas, all in the USA.
In April 2024, the Company obtained a trading facility on the OTCQB Venture
Market in the USA.
During May 2024, the Company announced the intent to pay a 0.25 pence dividend
in July 2024 to all qualifying shareholders.
In April 2024, Craig Howie joined the Board of Union Jack as an independent
non-executive director.
During May 2024, a Carbon Intensity Study on the West Newton gas development
project, compiled by GaffneyCline was published showing an AA rating.
In June 2024, the Company acquired a 45% interest in the Rogers Secondary
Recovery project in Oklahoma, USA.
In June 2024, Ray Godson, non executive director retired from the Board at the
Annual General Meeting.
During October 2024, planning approval for further development at Wressle was
rescinded by North Lincolnshire Council as a consequence of the Supreme Court
Finch ruling in June 2024.
In November 2024, the Taylor 1-16 well in Oklahoma, USA was drilled and awaits
completion in the Hunton and Cromwell formations during H1 2025.
FUTURE DEVELOPMENTS
The directors intend to continue with the Company's stated strategy, reviewing
the licence interests held in respect of future viability, any potential
impairment indicators that may arise during the year and adjusting as soon as
possible to any changes that may be required in the operation of the licence
interests held.
In the UK the Company holds a number of key, quality project interests,
namely, Wressle, West Newton, Biscathorpe, Keddington and North Kelsey, where
development, appraisal and exploration plans are in place for the future
benefit of stakeholders and the Company.
The initial success as a result of the drilling and development of the Andrews
1-17, Andrews 2-17 (the Andrews Field), Taylor 1-16 and Moccasin 1-13 (post
Balance Sheet date) wells is highly encouraging and further drilling and
development in the USA is planned for the future.
KEY PERFORMANCE INDICATORS
The Financial Statements for the year ended 31 December 2024, show production
from Wressle and Keddington within the UK, and the Andrews Field and Mineral
Royalties in the USA.
The Board is extremely pleased with the business performance of the Company
and notes the positive financial figures reported within the Key Performance
Indicators table.
During the year, the Company remained profitable and paid a dividend.
Further events which took place after the Balance Sheet date are described in
the Directors' Report and note 23 to the Financial Statements.
Table of Key Performance Indicators
Key Performance Indicators For the Year Ending For the Year Ending
31 December 2024
31 December 2023
£
£
Revenue 3,929,722 5,065,679
Total Comprehensive Income 240,421 733,687
Cash and Cash Equivalents 2,527,831 5,198,303
Net Current Assets 3,172,066 6,356,047
Total Equity 21,870,751 21,896,746
INCOME STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2024
Notes 31.12.24 31.12.23
£
£
Revenue 3,929,722 5,065,679
Cost of sales - operating costs (1,443,518) (1,118,794)
Cost of sales - depreciation (398,654) (463,782)
Cost of sales - Net Profit Interest payment (119,449) (184,259)
Gross profit 1,968,101 3,298,844
Administrative expenses (excluding impairment charge) (1,878,089) (2,057,506)
Impairment (10,148) (56,829)
Total administrative expenses (1,888,237) (2,114,335)
Operating profit 79,864 1,184,509
Finance income 129,617 141,672
Royalty income 196,737 35,142
Profit before taxation 406,218 1,361,323
Taxation 242,995 (502,234)
Profit for the financial year 649,213 859,089
Attributable to: 649,213 859,089
Equity shareholders of the Company
Earnings per share 2 - -
0.61
0.79
Basic (pence)
Diluted (pence) 2 0.60 0.79
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2024
31.12.24 31.12.23
£
£
Profit for the financial year 649,213 859,089
Items which will not be reclassified subsequently
to profit
Other comprehensive income
(Loss)/profit on investment revaluation (408,792) 44,984
Taxation - (170,386)
Total comprehensive profit for the financial year 240,421 733,687
BALANCE SHEET
AS AT 31 DECEMBER 2024
Notes 31.12.24 31.12.23
£
£
Assets 12,417,318 10,905,630
Non-current assets
7
Exploration and evaluation assets
Property, plant and equipment 8 7,691,397 5,888,456
Investments 10 121,320 530,112
Deferred tax asset 5 221,110 106,838
20,451,145 17,431,036
Current assets
Inventories 11,149 21,313
Trade and other receivables 11 855,980 1,525,954
Cash and cash equivalents 12 2,527,831 5,198,303
3,394,960 6,745,570
Total assets 23,846,105 24,176,606
Liabilities
Current liabilities
Trade and other payables 19 222,894 389,523
Non-current Liabilities 20 1,688,740 1,890,337
Provisions
Deferred tax liability 5 63,720 -
1,752,460 1,890,337
Total liabilities 1,975,354 2,279,860
Net assets 21,870,751 21,896,746
Capital and reserves attributable to the Company's equity shareholders
Share capital 13(a) 7,514,576 7,514,576
Share-based payments reserve 14 712,634 712,634
Treasury reserve 14 (1,736,700) (1,736,700)
Accumulated profit 14 15,380,241 15,406,236
Total equity 21,870,751 21,896,746
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024
Share Share-based payment Treasury Accumulated profit Total
capital
reserve
reserve
£
£
£
£
£
Balance at 1 January 2024 7,514,576 712,634 (1,736,700) 15,406,236 21,896,746
Profit for the financial year - - - 649,213 649,213
Other comprehensive profit - - - (408,792) (408,792)
Total comprehensive profit - - - 240,421 240,421
for the year
Contributions by and
distributions to owners
Dividends - - - (266,416) (266,416)
Total contributions by and - - - (266,416) (266,416)
distributions to owners
Balance at 31 December 2024 7,514,576 712,634 (1,736,700) 15,380,241 21,870,751
Balance at 1 January 2023 7,514,576 712,634 (214,227) 14,992,248 23,005,231
Profit for the financial year - - - 859,089 859,089
Other comprehensive profit - - - 44,984 44,984
Taxation - - - (170,386) (170,386)
Total comprehensive profit - - - 733,687 733,687
for the year
Contributions by and
distributions to owners
Dividends - - - (319,699) (319,699)
Treasury shares - - (1,522,473) - (1,522,473)
Total contributions by and - - (1,522,473) (319,699) (1,842,172)
distributions to owners
Balance at 31 December 2023 7,514,576 712,634 (1,736,700) 15,406,236 21,896,746
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2024
31.12.24 31.12.23
£
£
Cash flow from operating activities 344,371 1,984,019
Cash flow from investing activities (1,596,514) (1,814,716)
Purchase of intangible assets
Purchase of property, plant and equipment (2,469,451) (766,424)
Disposal of assets - 227,272
Fixed term deposit 1,000,000 -
Purchase of Investments - (770,173)
Sale of investments - 883,725
Royalties received 187,921 -
Interest received 129,617 141,672
Net cash used in investing activities (2,748,427) (2,098,644)
Cash flow from financing activities
Dividends paid (266,416) (319,699)
Treasury shares - (1,522,473)
Net cash used in financing activities (266,416) (1,842,172)
Net decrease in cash and cash equivalents (2,670,472) (1,956,797)
Cash and cash equivalents at beginning of financial year 5,198,303 7,155,100
Cash and cash equivalents at end of financial year 2,527,831 5,198,303
Notes to the Financial Statements
for the year ended 31 December 2024
1 ACCOUNTING POLICIES
Basis of Preparation
The annual financial statements of Union Jack Oil plc ("the Company") have
been prepared in accordance
with UK adopted international accounting standards ("IFRS") applied in
accordance with the provisions of the Companies Act 2006.
IFRS is subject to amendment and interpretation by the International
Accounting Standards Board ("IASB") and the IFRS Interpretations Committee.
These accounting policies comply with each IFRS that is mandatory for
accounting periods ending on 31 December 2024 and subject to adoption by the
UK Endorsement Board ("UKEB").
The financial statements have been prepared under the historical cost
convention except for the valuation of investments that have been measured at
fair value through other comprehensive income. The principal accounting
policies set out below have been consistently applied to all periods
presented.
Going Concern
The Company's business activities, together with the factors likely to affect
its future development, performance and position are set out in the Chairman's
Statement and this Strategic Report. The directors' forecasts demonstrate that
the Company will meet its day-to-day working capital and share of estimated
project costs over the forecast period being at least 12 months from the
sign-off of these financial statements through to 30 June 2026.
There are a number of risks to the Company's working capital position, which
have been identified by the directors and its independent advisor, OGA,
namely: (i) timing of incurred costs; (ii) scope of work programmes
undertaken; and (iii) realised oil price.
The impact of those risks on the Company's working capital position has been
assessed under a range of differing scenarios, with the most adverse, given
the current operating environment and stage of development that the Company's
assets are at, being identified as being the basis for evaluating the impact
for the Going Concern assessment using the worst case "stress test."
The Company has sufficient funding to meet planned expenditures and a level of
contingency. Taking account
of the risks, the stress test shows that the Company is able to operate within
the level of funds currently held
at the date of approval of these financial statements.
The directors have a reasonable expectation that the Company has adequate
resources to continue in operational existence for the foreseeable future.
Thus, they continue to adopt the going concern basis of accounting in
preparing the financial statements.
2 EARNINGS Per Share
The Company has issued options over ordinary shares which could potentially
dilute the basic earnings per share in the future.
Basic earnings per share is calculated by dividing the profit attributable to
ordinary shareholders by the weighted average number of ordinary shares
outstanding during the year.
These options have been taken into account when calculating the diluted
earnings per share.
Earnings per share 2024 2023
Pence
Pence
Profit per share from continuing operations 0.61 0.79
- Basic
- Diluted 0.60 0.79
The profit and weighted average number of ordinary shares used in the
calculation of profit per share are as follows:
2024 2023
£
£
Profit used in the calculation of total basic and diluted profit per share 649,213 859,089
Number of shares 2024 2023
Weighted average number of ordinary shares for the purposes of basic 106,565,896 108,268,772
and diluted profit per share
- Basic
- Diluted 107,915,896 108,531,272
The Company has 831,680,400 (2023: 831,680,400) deferred shares. These have
not been included within the calculations of basic shares above on the basis
that IAS 33 defines an ordinary share as an equity instrument that is
subordinate to all other classes of equity instruments. Any residual interest
in the assets of the Company would not currently, on liquidation, go to the
deferred shareholders, hence they are not currently considered subordinate.
These deferred shares have not been taken into account when calculating the
diluted profit per share as their impact was anti-dilutive.
3 RECONCILIATION OF Profit TO CASH GENERATED FROM OPERATIONS
31.12.24 31.12.23
£
£
Profit for the year 406,218 1,361,323
Depletion of producing assets 398,654 463,782
Accretion (19,132) 97,751
Impairment of intangibles 10,148 56,829
Provision adjustment (62,442) -
Amortisation / depreciation 73,757 34,541
Loss on disposal of assets - 18,299
Finance income (129,617) (141,672)
Royalty income (196,737) (35,142)
480,849 1,855,711
Decrease in inventories 10,164 6,725
(Increase) / decrease in trade and other receivables (321,210) 373,029
(Decrease) / increase in trade and other payables (17,875) 10,167
Cash generated from operations 108,781 2,245,632
Income taxes received / (paid) 192,443 (261,613)
Net cash flows from operating activities 344,371 1,984,019
4 INTANGIBLE assets
31.12.24 31.12.24 31.12.24 31.12.23
Exploration and evaluation
Royalties
Total
Total
£
£
£
£
Cost
At 1 January 10,229,400 681,727 10,911,127 9,160,176
Costs incurred in the year 1,408,011 134,287 1,542,298 1,844,561
Disposals - - - (93,610)
At 31 December 11,637,411 816,014 12,453,425 10,911,127
Depreciation and impairment
At 1 January 3,312 2,185 5,497 26,170
Amortisation charge for the year - 30,610 30,610 2,185
Disposals - - - (22,858)
At 31 December 3,312 32,795 36,107 5,497
Net book value
At 31 December 11,634,099 783,219 12,417,318 10,905,630
At 1 January 10,226,088 679,542 10,905,630 9,134,006
Additions to exploration and evaluation costs represent exploration and
appraisal costs incurred in the year in respect of unproven properties and
provisions recognised for decommissioning and restoration liabilities.
The directors have reviewed whether there were any potential indicators for
impairment evidence for each of the assets. If an indicator was identified,
the directors considered the potential value of the projects and licences. The
directors have also considered the likely opportunities for realising the
value of licences and have concluded that the likely value of each exploration
area is individually in excess of its carrying amount. There was no impairment
for 2024.
Included in the above intangible asset additions during the year are amounts
arising in relation to changes in decommissioning and restoration provisions.
Intangible assets (less any impairment and provisions) comprise amounts
capitalised as follows:
31.12.24 31.12.23
£
£
West Newton PEDL183 6,418,468 6,137,178
Biscathorpe PEDL253 3,804,139 3,666,898
North Kelsey PEDL241 492,313 422,012
US Royalties 783,219 679,542
Moccasin 298,770 -
Diana 275,977 -
Rogers Secondary Recovery Project 183,282 -
East Shawnee 161,150 -
12,417,318 10,905,630
5 PROPERTY, PLANT AND
EQUIPMENT
31.12.24 31.12.24 31.12.24 31.12.23
Development and production
Equipment
Total
Total
£
£
£
£
Cost
At 1 January 10,005,023 172,587 10,177,610 9,412,146
Additions 2,254,890 - 2,254,890 804,454
Disposals - - - (38,990)
At 31 December 12,259,913 172,587 12,432,500 10,177,610
Depreciation and impairment
At 1 January 4,256,798 32,356 4,289,154 3,745,934
Depreciation charge for the year 398,654 43,147 441,801 496,138
Disposals - - - (9,747)
Costs impaired 10,148 - 10,148 56,829
At 31 December 4,665,600 75,503 4,741,103 4,289,154
Net book value
At 31 December 7,594,313 97,084 7,691,397 5,888,456
At 1 January 5,748,225 140,231 5,888,456 5,666,212
The Board has assessed the Development and Production assets as at 31 December
2024 and has identified indicators of impairment as set out in IAS36
Impairment of assets in respect of EXL294 Fiskerton Airfield. This impairment
amounts to a total of £10,148 (2023: £56,829). This licence has a carrying
value of nil (2023: nil) and the impairment shown here represents a movement
in the abandonment provision.
There were no indicators for impairment on any other assets.
Development and Production assets comprise amounts capitalised as follows:
31.12.24 31.12.23
£
£
Wressle PEDL180/182 4,906,764 4,844,894
Keddington PEDL005(R) 971,459 903,331
Andrews 1-17 849,181 -
Andrews 2-17 280,662 -
Taylor 586,247 -
7,594,313 5,748,225
6 SHARE CAPITAL
Allotted and issued: Class Nominal 31.12.24 31.12.23
Number
value
£
£
112,865,896 Ordinary 5p 5,643,295 5,643,295
(31 December 2023: 112,865,896)
831,680,400 Deferred 0.225p 1,871,281 1,871,281
(31 December 2023: 831,680,400)
Total 7,514,576 7,514,576
Ordinary shares hold voting rights and are entitled to any distributions made
on winding up. Deferred shares do not hold voting or dividend rights and are
not entitled to distributions made on winding up.
Treasury Shares
2024 2023
Number £ Number £
Ordinary shares held in treasury 6,300,000 1,736,700 6,300,000 1,736,700
by the Company
7 EVENTS AFTER THE BALANCE SHEET DATE
The following events have taken place after the year end:
During January 2025, the Moccasin 1-13 well (Moccasin), located in
Pottawatomie County, Oklahoma, USA was spudded and drilled to a Total Depth of
5,690 feet.
Moccasin penetrated the primary objective, the 1st Wilcox and two other
secondary zones, the Bartlesville and Red Fork Sands.
Subsequently the 1st Wilcox was perforated and the formation flowed at an open
hole rate equating to 621 barrels of oil per day.
Moccasin is now in test production under a restricted choke.
The Bartlesville and Red Fork sands await completion.
8 COPIES OF THE ANNUAL REPORT AND FINANCIAL STATEMENTS
The 2024 Annual Report and Financial Statements will be posted to shareholders
on or around 26 May 2025 and are now available on the Company's website
www.unionjackoil.com (https://www.unionjackoil.com/) .
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. END FR KZGMKDRGGKZMRecent news on Union Jack Oil
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