REG - Union Jack Oil PLC - Final Results for the Year Ended 31 December 2025
26/05/2026 07:00
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RNS Number : 5206F Union Jack Oil PLC 26 May 2026
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.
26 May 2026
Union Jack Oil plc
("Union Jack" or the "Company")
Final Results for the Year Ended 31 December 2025
Notice of AGM
Union Jack Oil plc (AIM: UJO), a UK and USA focused onshore hydrocarbon
production, development, exploration and investment company, announces its
audited results for the year ended 31 December 2025.
Copies of the Company's Annual Report will be posted to shareholders on or
before 30 May 2026 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 26 June 2026 at
11.00 a.m.
Financial Highlights
• Gross profit of £691,001 (2024: £1,968,101)
• Net loss of £7,029,350, including impairment of Biscathorpe, North
Kelsey and Sark (2024: £649,213 net profit)
• Basic loss per share 5.68 pence (2024: 0.61 pence earnings)
• Oil and gas revenues £2,489,507 (2024: £3,929,722)
• The Company continues to be debt free
David Bramhill, Executive Chairman, commented:
"The Board is confident the successful transition of focus to the USA will
continue to drive further growth.
"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 am confident that an increase in drilling, appraisal and development
activity currently 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 ongoing 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.
"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."
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
George Duxberry
Gneiss Energy Limited +44 (0)20 3983 9263
Financial Adviser
Jon Fitzpatrick
Harbour Access +1 (475) 477 9402
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 50 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 write this year's message to shareholders with a backdrop of volatile energy
markets with high oil prices hovering around US$100 per barrel and equally
high European and international gas prices, however, the Board of Union Jack
remains resolute in its commitment to the merits of the strategic direction
that was set in train at the end of 2024, within the USA. We embarked on a
necessary international diversification into the attractive oil and gas
opportunities available in the USA, taking full advantage of our UK production
portfolio in order to achieve future growth and deliver material shareholder
value.
The decision made to seek further opportunities in the USA, where operations
can be executed unhindered in a short time frame and where a sensible and fair
tax policy is applied, was the correct one. As an important first step, we
formed a strategic partnership with Reach Oil and Gas Inc. ("Reach") focused
on hydrocarbon exploration, development and production opportunities in
Oklahoma, USA.
In a relatively short period, Union Jack's strategic diversification into the
USA has delivered excellent initial results and I remind shareholders that oil
and gas drilling activity is not without subsurface, technical and commercial
risks.
I am pleased to report we have drilled five wells with Reach and seen an
impressive 80% success rate and profitable returns. An additional well,
Crossroads, located in Oklahoma was drilled during May 2026 and awaits
testing.
The Moccasin 1-13 well was drilled during Q1 2025 and the primary objective
1st Wilcox formation was perforated, tested and confirmed as a commercial oil
producer. Moccasin 1-13 is currently producing approximately 48 barrels of oil
per day gross. Two additional zones, the Bartlesville and Red Fork formations
await evaluation in the future.
We expect to continue to expand our drilling activities in Oklahoma where we
are pinpointing a number of projects with considerable upside and the
potential for material production and reserves.
The only exception to our high drilling success rate was the Sark well that
was not a commercial success. Sark is a timely reminder that it is not
possible to mitigate all technical risks associated in drilling new wells.
The Company's Mineral Royalty portfolio continued to perform well and
delivered an 11.9% return on investment in 2025.
To put Union Jack's journey in a historical context, it is now more than 13
years since the Company was admitted to trading on AIM, with an original focus
of activity solely on exploration and development of hydrocarbon projects
onshore UK. Over that period, there were a number of successes, notably, the
Wressle oil and gas discovery and subsequent development.
However, in recent years successive UK Governments' policies have made our UK
business increasingly difficult to progress due to complex planning,
regulatory burden and high taxation, resulting in unpredictable approval
timeframes bringing additional uncertainty, significant cash costs and lost
opportunities. Notwithstanding the sterling efforts demonstrated by our UK
Joint Venture partners and able operators, the cost of maintaining a number of
our non-producing UK licence interests has become increasingly difficult to
justify regardless of their potential future value. As a consequence, we made
the difficult decision to commence relinquishment of the Company's interests
in our Biscathorpe and North Kelsey licences during the year. These two
projects have been written down and the impairment effect reflected within
these Financial Statements.
We continue to highlight the merits of Wressle, our flagship UK project, which
provides material revenues, alongside Keddington where production resumed in
mid-2025 following major site upgrades.
During the remainder of 2026 and beyond, the Company intends to continue to
review the merits of its UK non-production licence interests while
prioritising asset allocation in favour of growing its hydrocarbon
exploration, development and production enterprise in Oklahoma. This approach,
in the Board's view, has an excellent chance of delivering on our strategic
intent to grow production and reserves and so generate significant shareholder
value.
Additional information on the Company's projects within the UK and USA can be
found within the Operational Review.
CORPORATE AND FINANCIAL
Revenues from oil and gas sales of £2,489,507 (2024: £3,929,722) were
reported for the period under review resulting in the Company being able to
report a gross profit of £691,001 (2024: £1,968,101), with a net loss of
£7,029,350 (2024: £649,213 net profit) including impairment of Biscathorpe
and North Kelsey in the UK and Sark in the USA.
Basic loss per share of 5.68 pence was reported (2024: 0.61 pence earnings).
The last six months has seen the Board implement an ongoing major cost
reduction programme.
Current cost savings will reduce G&A by approximately £500,000 per annum.
The Board is examining further methods of cutting costs in the future
including salaries and consultant's fees.
The Company has relinquished its quote on the OTCQB venture market due to lack
of activity in the Company's shares, however, retains a public relations
presence in the USA.
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 is confident the successful transition of focus to the USA will
continue to drive further growth.
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 am confident that an increase in drilling, appraisal and development
activity currently 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 ongoing 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.
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.
David Bramhill
Executive Chairman
22 May 2026
OPERATIONAL REVIEW
WRESSLE DEVELOPMENT PEDL180 AND PEDL182 (40%)
Wressle is located in North 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$24,000,000 net to Union Jack before taxes.
To date, over 800,000 barrels of high-quality oil have been produced and sold
from Wressle.
During the period, Wressle produced on constrained flow an average of 297
barrels of oil per day ("bopd"), Union Jack net 119 bopd.
• Average oil price of US$68.2
• Average water cut of 38.65%
• Site downtime of 28 days
Water produced is easily managed and disposed of at a nearby facility.
Site upgrades and facility improvements continue to be implemented to improve
efficiency, optimise production efficiencies and to eliminate routine flaring.
The Wressle project remains a high-value asset in Union Jack's portfolio with
2P reserves of over 2,300,000 barrels of oil equivalent gross to be extracted
according to ERCE as stated within their Competent Persons Report ("CPR").
The Joint Venture parties are awaiting regulatory approvals for planning and
permit applications that will enable the next phase of field development to
take place.
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
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
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 progressing this key project and crystallising 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.
Union Jack holds a 16.665% working interest in PEDL183, that incorporates the
West Newton gas discoveries and is operated on behalf of the Joint Venture
partners by Rathlin Energy (UK) Ltd ("Rathlin").
The West Newton 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 compiled by independent engineers RPS Group Limited ("RPS")
in the CPR published 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.
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.
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.
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.
Rathlin, along with its Joint Venture partners, has been evaluating ways of
generating additional value through early production schemes, ahead of any
longer-term full gas field development.
Rathlin has been informed by the Environment Agency ("EA") that it has issued
the variation to the permit for the West Newton 'A' Well Site to include a
reservoir stimulation in the
WNA-2 well, subject to certain pre-operational conditions. The recompletion
works are designed to overcome well bore damage that was sustained during
earlier drilling operations.
This key regulatory milestone clears a major hurdle in the path toward
development and eventual production at West Newton, strengthening Rathlin's,
and consequently Union Jack's, ability to advance its UK onshore assets within
a responsible environmental and social governance framework.
The Company is confident that West Newton will prove to be an important
strategic asset to the UK as the country looks to secure domestic energy
supply and affordable energy.
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.
Following a major upgrade of site facilities and infrastructure during 2025,
Keddington was brought back on-line in June 2025 and to date over 8,750
barrels of oil have been produced and sold.
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.
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 and infill target.
The sub-surface location of a step-out well has been finalised and it is
planned to drill the well, where planning consent is already granted, when the
Operator deems appropriate.
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.
The licence operator, Egdon Resources U.K. Limited had previously secured
planning consent for the appraisal and production for hydrocarbons. A
subsequent legal challenge in the High Court based on the Finch decision
quashed the planning consent.
Supplementary information was provided to the Planning Inspectorate ("PINS")
during 2025 that included a Statement of Case, an updated Statement of Common
Ground and a Climate Change Assessment. During October 2025, PINS unexpectedly
advised that a new Planning Inspector had been appointed and he had concluded
that the appeal should be conducted via a Public Inquiry, rather than the
Joint Venture partners preference for written representations.
Having considered the commercial aspects, prevailing tax regime and the
continued lack of clear case of law in respect of oil and gas projects in the
UK, the Joint Venture partnership concluded that it could no longer justify
its continued investment in the Biscathorpe project. and therefore the well
will be plugged and the site restored.
The investment made over the years by Union Jack has been impaired within
these Financial Statements.
NORTH KELSEY PEDL241 (50%)
The Board of Union Jack has concluded that due to the lack of clear case law
in respect of oil and gas projects no further investment should be made in
North Kelsey. The project has been assessed and its value in use was less than
its carrying value, therefore North Kelsey has been impaired within these
Financial Statements.
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
Since commencing activities in the USA Union Jack has:
• Acquired material ownership interests in numerous drilling,
development and production projects in Oklahoma
• Formed a drilling partnership with Reach
• Built a quality, cash generating, Mineral Royalty portfolio in the
Permian Basin, Bakken Shale and Eagle Ford Shale
• Received material cash flows from its operations
• Formed relationships with an excellent team of advisers
We also look forward in anticipation of a success at the Crossroads well
currently awaiting testing in Oklahoma.
Our drilling partners, Reach, 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.
WEST BOWLEGS PROSPECT ANDREWS 1-17 AND ANDREWS 2-17 DISCOVERY WELLS OKLAHOMA -
THE ANDREWS FIELD (45%)
Union Jack holds 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 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 100,000,000 cubic feet of clean natural gas and approximately 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 was an excellent start for Union Jack in its
initial enterprise with Reach, meeting 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
was drilled in January 2025 to test a dip and fault closed structure west of
the Wilzetta fault.
Moccasin encountered hydrocarbons in three zones, the 1st Wilcox, Bartlesville
and Red Fork sands.
The 1st Wilcox Sand was perforated and production established in February
2025. To date Moccasin has produced circa 23,000 barrels of good quality oil
and is currently producing approximately 48 bopd.
The Red Fork and Bartlesville Sands have good hydrocarbon shows from the
geological sample log and the Computed Petrophysical Interpretation indicates
hydrocarbon presence in both of these formations. The hydrocarbons are "behind
pipe" and remain to be perforated at a later date.
Since completion of the 1st Wilcox Sand, Union Jack has purchased the 3D
seismic over the Moccasin prospect area. Preliminary evaluation indicates
another potential structure is present and mapping of the seismic continues.
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"), encountered the Hunton, Misner and Cromwell
Sand formations.
The Cromwell formation was subjected to a nitrogen foam treatment to enhance
production.
A nitrogen foam treatment is a stimulation technique used in sandstone
reservoirs where liquid nitrogen is combined with a small volume of water and
surfactant to create a stable foam that carries proppant into induced
fractures.
Following the application of this process, the Taylor well is now producing up
to 15 bopd and permanent production facilities have been installed
The Hunton, following perforation was gas depleted and is oil bearing and
alternative lift measures for production are being considered.
MINERAL ROYALTIES
Union Jack holds six quality Mineral Royalty packages, all brokered by the
Company's Oklahoma based agent and adviser, Reach.
The Mineral Royalties portfolio delivered returns in excess of 11.9% by
contributing revenues of £89,819 in 2025 (£196,737 in 2024) based on a
capitalised value of £751,834 at year end 2025 (£783,219 in 2024).
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 11.9% during 2025
The Mineral Royalties assembled to date are summarised below:
• Cronus Unit, containing a 25 well package in the Permian Basin,
Midland County, Texas comprising 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
comprising of seven horizontal and eight vertical wells
• Occidental operated Palm Springs Unit, containing 10 horizontal
wells in the Permian Basin, Howard County, Texas
• 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
• 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
• Eagle Ford Shale, comprising of a nine producing horizontal well
package, located in DeWitt County, Texas, operated by ROCC Operating
The Mineral Royalties also provide additional upside as new wells are
completed and drilled on the properties at no cost to Union Jack.
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.
USA CORPORATE GROWTH AND ADVISERS
Union Jack's corporate growth in the USA 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 2025
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 £691,001 (2024: £1,968,101).
The net loss for the year, including impairments, amounted to £7,029,350
(2024: £649,213 profit).
Impairments to Exploration and Exploration assets total £5,181,707 (2024:
nil). The impairments are in relation to PEDL253 Biscathorpe, PEDL241 North
Kelsey in the UK and the Sark well located in the USA.
Administrative expenses, excluding impairment costs, amounted to £2,477,222
(2024: £1,878,089).
Cash and cash equivalents at year end amounted to £1,460,847 (2024:
£2,527,831).
Total Assets at year end amounted to £19,083,850 (2024: £23,846,105).
Non-current assets at year end amounted to £17,226,569 (2024: £20,451,145).
Intangible Assets totalled £8,244,251 (2024: £12,417,818).
Tangible assets totalled £8,870,427 (2024: £7,691,397).
The Company's Income Statement reports revenues of £2,489,507 (2024:
£3,929,722) in respect of production income.
In January 2025, the Moccasin 1-13 well was spudded in Oklahoma, USA.
During March 2025, the Company announced that the Moccasin 1-13 well was a
commercial discovery and in production.
During June 2025, the Company announced the resumption of production from the
Keddington Oilfield, following major site upgrades.
During July 2025, the Company raised £2,000,000 before expenses via an
institutional placing.
During August 2025, the Sark well located in Oklahoma, USA was drilled and was
subsequently classified as non-commercial.
During August 2025, the Company signed an agreement with the operator, Reach,
to acquire an interest in the Crossroads exploration well.
During December 2025, the Company announced a planning update for Biscathorpe
where the decision was made by the Joint Venture partners to relinquish the
licence.
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 and Keddington, where development, appraisal and
exploration plans are in place for the future benefit of stakeholders and the
Company.
KEY PERFORMANCE INDICATORS
The Financial Statements for the year ended 31 December 2025, show production
from Wressle and Keddington within the UK, and the Andrews Field, Moccasin and
Mineral Royalties in the USA.
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 2025
31 December 2024
£
£
Revenue 2,489,507 3,929,722
Total Comprehensive (Loss) / Profit (7,038,779) 240,421
Cash and Cash Equivalents 1,460,847 2,527,831
Net Current Assets 1,365,622 3,172,066
Total Equity 16,831,972 21,870,751
INCOME STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2025
Notes 31.12.25 31.12.24
£
£
Revenue 2,489,507 3,929,722
Cost of sales - operating costs (1,322,615) (1,443,518)
Cost of sales - depreciation (444,105) (398,654)
Cost of sales - Net Profit Interest payment (31,786) (119,449)
Gross profit 691,001 1,968,101
Administrative expenses (excluding impairment charge) (2,477,222) (1,878,089)
Impairment (5,200,050) (10,148)
Total administrative expenses (7,677,272) (1,888,237)
Operating (loss) / profit (6,986,271) 79,864
Finance income 24,393 129,617
Royalty income 89,918 196,737
(Loss) / profit before taxation (6,871,960) 406,218
Taxation (157,390) 242,995
(Loss) / profit for the financial year (7,029,350) 649,213
Attributable to: (7,029,350) 649,213
Equity shareholders of the Company
(Loss) / earnings per share 2 - -
(5.68)
0.61
Basic (pence)
Diluted (pence) 2 (5.68) 0.60
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2025
31.12.25 31.12.24
£
£
(Loss) / profit for the financial year (7,029,350) 649,213
Items which will not be reclassified subsequently
to profit
Other comprehensive income
Loss on investment revaluation (9,429) (408,792)
Total comprehensive (loss) / profit for the financial year (7,038,779) 240,421
BALANCE SHEET
AS AT 31 DECEMBER 2025
Notes 31.12.25 31.12.24
£
£
Assets 8,244,251 12,417,318
Non-current assets
4
Intangible assets
Property, plant and equipment 5 8,870,427 7,691,397
Investments 111,891 121,320
Deferred tax asset - 221,110
17,226,569 20,451,145
Current assets
Inventories 20,077 11,149
Trade and other receivables 376,357 855,980
Cash and cash equivalents 1,460,847 2,527,831
1,857,281 3,394,960
Total assets 19,083,850 23,846,105
Liabilities
Current liabilities
Trade and other payables 491,659 222,894
Non-current Liabilities 1,760,219 1,688,740
Provisions
Deferred tax liability - 63,720
1,760,219 1,752,460
Total liabilities 2,251,878 1,975,354
Net assets 16,831,972 21,870,751
Capital and reserves attributable to the Company's equity shareholders
Share capital 6 9,514,576 7,514,576
Share-based payments reserve 712,634 712,634
Treasury reserve 6 (1,736,700) (1,736,700)
Accumulated profit 8,341,462 15,380,241
Total equity 16,831,972 21,870,751
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2025
Share Share-based payment Treasury Accumulated profit Total
capital
reserve
reserve
£
£
£
£
£
Balance at 1 January 2025 7,514,576 712,634 (1,736,700) 15,380,241 21,870,751
Loss for the financial year - - - (7,029,350) (7,029,350)
Other comprehensive profit - - - (9,429) (9,429)
Total comprehensive profit - - - (7,038,779) (7,038,779)
for the year
Contributions by and
distributions to owners
Issue of share capital 2,000,000 - - - 2,000,000
Total contributions by and 2,000,000 - - - 2,000,000
distributions to owners
Balance at 31 December 2025 9,514,576 712,634 (1,736,700) 8,431,462 16,831,972
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
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
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2025
31.12.25 31.12.24
£
£
Cash flow from operating activities 3 (669,594) 344,371
Cash flow from investing activities (1,326,231) (1,596,514)
Purchase of intangible assets
Purchase of property, plant and equipment (1,222,477) (2,469,451)
Royalties received 126,925 187,921
Interest received 24,393 129,617
Net cash used in investing activities (2,397,390) (2,748,427)
Cash flow from financing activities
Proceeds on issue of new shares 2,000,000 -
Dividends Paid - (266,416)
Net cash generated / (used) in financing activities 2,000,000 (266,416)
Net decrease in cash and cash equivalents (1,066,984) (2,670,472)
Cash and cash equivalents at beginning of financial year 2,527,831 5,198,303
Cash and cash equivalents at end of financial year 1,460,847 2,527,831
Notes to the Financial Statements
for the year ended 31 December 2025
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 2025 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 material accounting
policies set out below have been consistently applied to all periods
presented.
Going Concern
The Company's principal activities, together with the factors likely to
influence its future development, performance and position, are described in
the Chairman's Statement and the Strategic Report. The directors have prepared
forecasts which indicate that the Company will be able to meet its day-to-day
working capital requirements and its share of anticipated project costs for a
period of at least 12 months from the date of approval of these Financial
Statements, through to 31 May 2027.
In preparing these forecasts, the directors have considered a number of risks
to the Company's working capital position, as also identified by its advisor,
OGA. These include: (i) the timing of incurred costs; (ii) the scope of work
programmes undertaken; and (iii) realised oil prices.
The potential impact of these risks has been assessed under a range of
scenarios. The most adverse scenario, reflecting the current operating
environment and the stage of development of the Company's assets, has been
used as the basis for the going concern assessment through the application of
a severe but plausible downside "stress test."
The forecasts indicate that the Company has sufficient funding to meet its
planned expenditures, including an appropriate level of contingency. In
addition, the directors have agreed to implement cost-mitigation measures
should this be required to preserve cash resources. Furthermore, the Company
has considered other options including, if necessary, additional liquidity
through potential loan facility or other form of external financing.
Taking these factors into account, the stress testing demonstrates that the
Company is able to operate within its existing financial resources as at the
date of approval of these Financial Statements.
Accordingly, the directors have a reasonable expectation that the Company has
adequate resources to continue in operational existence for the foreseeable
future. They therefore continue to adopt the going concern basis of accounting
in preparing these Financial Statements.
2 (LOSS) / EARNINGS PER SHARE
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.
The Company has issued options over ordinary shares which could potentially
dilute the basic earnings per share in the future.
These options have not been taken into account when calculating the diluted
loss per share as their impact was anti-dilutive. Therefore, the basic and
dilutive loss per share are the same.
(Loss) / earnings per share 2025 2024
Pence
Pence
(Loss) / profit per share from continuing operations (5.68) 0.61
- Basic
- Diluted (5.68) 0.60
The (loss) / profit and weighted average number of ordinary shares used in the
calculation of profit per share are as follows:
2025 2024
£
£
(Loss) / profit used in the calculation of total basic and diluted profit per (7,029,350) 649,213
share
Number of shares 2025 2024
Weighted average number of ordinary shares for the purposes of basic 123,661,786 106,565,896
and diluted profit per share
- Basic
- Diluted 123,661,786 107,915,896
The Company has 831,680,400 (2024: 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
31.12.25 31.12.24
£
£
(Loss) / profit for the year before tax (6,871,960) 406,218
Depletion of producing assets 444,105 398,654
Accretion 12,304 (19,132)
Impairment of assets 5,200,050 10,148
Provision adjustment - (62,442)
Amortisation / depreciation 74,534 73,757
Loss on disposal 17,085 -
Finance income (24,393) (129,617)
Royalty income (89,918) (196,737)
(1,238,193) 480,849
(Increase) / decrease in inventories (8,928) 10,164
Decrease / (increase) in trade and other receivables 442,616 (321,210)
Increase / (decrease) in trade and other payables 117,826 (17,875)
Cash (used in) / generated from operations (669,594) 108,781
Income taxes received - 192,443
Net cash flows (used in) / from operating activities (669,594) 344,371
4 INTANGIBLE assets
31.12.25 31.12.25 31.12.25 31.12.24
Exploration and evaluation
Royalties
Total
Total
£
£
£
£
Cost
At 1 January 11,637,411 816,014 12,453,425 10,911,127
Costs incurred in the year 1,338,795 - 1,338,795 1,542,298
Transfer to development and production assets (298,770) - (298,770) -
At 31 December 12,677,436 816,014 13,493,450 12,453,425
Depreciation and impairment
At 1 January 3,312 32,795 36,107 5,497
Amortisation charge for the year - 31,385 31,385 30,610
Costs impaired 5,181,707 - 5,181,707 -
At 31 December 5,185,019 64,180 5,249,199 36,107
Net book value
At 31 December 7,492,417 751,834 8,244,251 12,417,318
At 1 January 11,634,099 783,219 12,417,318 10,905,630
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 assessed the Exploration and Evaluation assets as at 31
December 2025 and have identified indicators of impairment as set out in IFRS
6 Exploration for and Evaluation of Mineral Resources in respect of PEDL253
Biscathorpe, PEDL241 North Kelsey and the Sark Well. These impairment amounts
are Biscathorpe £3,944,104 (2024: nil), North Kelsey £534,805 (2024: nil)
and Sark £702,798 (2024: nil) amounting to a total of £5,181,707 (2024:
nil). These licences have a carrying value of nil as of 31 December 2025
(2024: £4,296,452).
The impairment indicators were as follows:-
PEDL253 Biscathorpe
Having considered the commercial aspects, prevailing tax regime and the
continued lack of clear case law in respect of oil and gas projects in the UK
post-Finch, the PEDL253 Joint Venture partnership concluded that it could no
longer justify its continued investment in the Biscathorpe project, and
withdrew its appeal against the refused planning application. It was further
decided to relinquish the licence at the earliest opportunity and therefore
management decided to fully impair the licence.
PEDL241 North Kelsey
As part of the annual evaluation of licences it was assessed that North
Kelsey's value in use was less than its carry value in all but the most
optimistic scenario and therefore management has decided that the licence
should be fully impaired.
Sark
The Sark project was spudded in August 2025 and drilled to a target depth of
5,391 feet during August and September. Through testing it was shown that
there was a valid structural closure, however, the trap was subsequently
breached. The site has been rehabilitated in accordance with local
regulations. As a result, management have fully impaired this asset. As all
the activity occurred in the current year the licence does feature in the
below table of assets at the year end.
Included in the above intangible asset additions during the year are amounts
arising in relation to changes in decommissioning and restoration provisions.
31.12.25 31.12.24
£
£
West Newton PEDL183 6,655,501 6,418,468
Biscathorpe PEDL253 - 3,804,139
North Kelsey PEDL241 - 492,313
US Royalties 751,834 783,219
Moccasin - transferred to development and production - 298,770
Diana 295,040 275,977
Rogers Secondary Recovery Project 212,423 183,282
East Shawnee 161,150 161,150
Crossroads 168,303 -
8,244,251 12,417,318
5 PROPERTY, PLANT AND
EQUIPMENT
31.12.25 31.12.25 31.12.25 31.12.24
Development and production
Equipment
Total
Total
£
£
£
£
Cost
At 1 January 12,259,913 172,587 12,432,500 10,177,610
Additions 1,402,941 - 1,402,941 2,254,890
Disposals (41,979) - (41,979) -
Transfer from exploration and evaluation 298,770 - 298,770 -
At 31 December 13,919,645 172,587 14,092,232 12,432,500
Depreciation and impairment
At 1 January 4,665,600 75,503 4,741,103 4,289,154
Depreciation charge for the year 444,105 43,148 487,253 441,801
Disposals (24,894) - (24,894) -
Costs impaired 18,343 - 18,343 10,148
At 31 December 5,103,154 118,651 5,221,805 4,741,103
Net book value
At 31 December 8,816,491 53,936 8,870,427 7,691,397
At 1 January 7,594,313 97,084 7,691,397 5,888,456
The Board has assessed the Development and Production assets as at 31 December
2025 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 £18,343 (2024: £10,148). This licence has a carrying
value of nil (2024: 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:
31.12.25 31.12.24
£
£
Wressle PEDL180/182 5,238,756 4,906,764
Keddington PEDL005(R) 992,156 971,459
Andrews 1-17 803,526 849,181
Andrews 2-17 268,457 280,662
Taylor 679,297 586,247
Moccasin - transferred from exploration and evaluation 834,299 -
8,816,491 7,594,313
6 SHARE CAPITAL
Allotted and issued: Class Nominal 31.12.25 31.12.24
Number
value
£
£
152,865,896 Ordinary 5p 7,643,295 5,643,295
(31 December 2024: 112,865,896)
831,680,400 Deferred 0.225p 1,871,281 1,871,281
(31 December 2024: 831,680,400)
Total 9,514,576 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
2025 2024
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:
In January 2026, Craig Howie non-executive director resigned from the Board of
Directors.
In January 2026, Zac Phillips and John Americanos were appointed as
non-executive directors.
During February 2026, the Company announced that, Rathlin, operator of
PEDL183, West Newton, has been informed by the Environment Agency that it has
issued the variation to the permit for the West Newton 'A' Well Site to
include a reservoir stimulation in the WNA-2 well, subject to certain
pre-operational conditions. The recompletion works are designed to overcome
well bore damage that was sustained during earlier drilling operations.
During May 2026, the Crossroads well was drilled and awaits testing.
8 COPIES OF THE ANNUAL REPORT AND FINANCIAL STATEMENTS
The 2025 Annual Report and Financial Statements will be posted to shareholders
on or around 30 May 2026 and are now available on the Company's website
www.unionjackoil.com (https://www.unionjackoil.com/) .
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. END FR FZGZKDZVGVZM
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