REG - Union Jack Oil PLC - Unaudited Results for 6 months ended 30 June 2025
29/09/2025 07:00
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RNS Number : 0592B Union Jack Oil PLC 29 September 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.
29 September 2025
UNION JACK OIL PLC
("Union Jack" or the "Company")
Unaudited Results for the Six Months Ended 30 June 2025
Union Jack Oil plc (AIM: UJO and OTCQB: UJOGF), a USA and UK focused onshore
oil and gas production, development and exploration company, is pleased to
announce its unaudited results for the six months ended
30 June 2025.
FINANCIAL AND OPERATIONAL HIGHLIGHTS
· Oil and gas revenues £1,286,742 (2024: £2,338,710)
· Gross profit £454,401 (2024: £1,338,776)
· Reported net loss £489,674 (2024: profit £788,996)
· Net assets £21,381,077 (2024: £22,281,627)
· Mineral Royalties portfolio delivers 18% return on investment
· Zero debt
· Moccasin well was successfully drilled and brought onto production in
Oklahoma
Post Balance Sheet Events:
· Institutional share placing raised gross proceeds of £2,000,000
· Keddington Oilfield, onshore UK, back online after extensive site
upgrades
· Significant upgrades underway at flagship Wressle production site
onshore UK
· Three well 2025 H2 drilling programme commenced in Oklahoma with the
Sark well currently undergoing production testing
David Bramhill, Executive Chairman, commented: "The Half Yearly results are
operationally positive with the Company remaining in a strong position, free
of debt, retaining a robust balance sheet and holding a balanced portfolio of
production assets on both sides of the Atlantic, complemented with numerous
drilling and development projects that are either currently active or are
planned for the near future.
"Union Jack's asset strategy and geographical diversification delivers
durability across its key projects, encompassing both the UK and the USA.
"In the six month period under review, although the Company recorded a gross
profit of £454,401, an operating loss of £489,674 was reported. These
figures reflect a sharp decline in the oil price and a continuing downward
trend in the value of the US dollar against Sterling.
"Progress has been seen throughout the period under review, both in the UK and
in Oklahoma USA, our additional area of focus where we have experienced
material success with the Moccasin1-13 oil discovery, now in production,
producing at a restricted gross 60+ barrels of oil per day.
"Net barrels of oil equivalent production per day ("boepd") across the
production portfolio in the six months under review averaged 149 boepd (2024:
198 boepd) and is currently producing at circa 164 boepd.
"Cash flows from our exceptional flagship development, Wressle (Union Jack
40%) and the Keddington Oilfield (Union Jack 55%), where production has
recently been reinstated following site upgrades, continue to bolster the
Company's Balance Sheet and are contributing significantly to its financial
well-being.
"At Wressle, the development programme is progressing, with preparation for
new wells and gas monetisation which will enhance production and eliminate
routine flaring. In parallel, the site's surface facilities are being upgraded
to optimise current and future production efficiencies.
"West Newton, another key project within Union Jack's portfolio, retains the
potential to surprise positively. Reabold Resources plc, the indirect majority
holder of PED183, is working closely with the Company to extract the material
value that we feel is present within the licence area.
"To date, our discovery success rate in the USA has been 100%. There will
likely be some highs and lows in our quest for growth, however, I remain
confident that our increased activity will accelerate progress and continue to
support our growth ambitions going forward.
"During July 2025, the Company raised £2,000,000 before expenses via a
placing, bringing some welcomed quality institutional investors to our
shareholder register. The net proceeds are being used to conduct a three well
drilling programme in Oklahoma with our drilling partners, Reach Oil & Gas
Inc. ("Reach"). During the remainder of 2025, Union Jack will be involved in
testing and completion of Sark, followed by drilling of the Crossroads and
Wolverine wells in Oklahoma.
"The Company has a clear focus and the funding in place to complete its
Oklahoma drilling programme.
"Meanwhile, in the UK, we are beginning to see some distinct signs of life in
the supressed oil and gas sector and are keeping a watchful eye on wider
industry developments as major international oil companies including BP return
their focus to their "grass roots" E&P businesses. We are encouraged by
this and will continue to pursue our own goals of production expansion and
development at our key projects.
"I take this opportunity to thank our shareholders both old and new 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 the following:
Union Jack Oil plc info@unionjackoil.com (mailto: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 9263 3983
Financial Adviser
Jon Fitzpatrick
Paul Weidman
Harbor 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. Mr Bull is a member
of the Petroleum Exploration Society of Great Britain, the American
Association of Petroleum Geologists and a Fellow of the Geological Society of
London.
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
expectation 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 pleased to present this Half Yearly Report for the six months ended 30
June 2025 to the shareholders of the Company.
FINANCIAL AND OPERATIONAL HIGHLIGHTS
· Oil and gas revenues £1,286,742 (2024: £2,338,710)
· Gross profit £454,401 (2024: £1,338,776)
· Reported net loss £489,674 (2024: profit £788,996)
· Net assets £21,381,077 (2024: £22,281,627)
· Mineral Royalties portfolio delivers 18% return on investment
· Zero debt
· Moccasin well was successfully drilled and brought onto production in
Oklahoma
Post Balance Sheet Events:
· Institutional share placing raised gross proceeds of £2,000,000
· Keddington Oilfield, onshore UK, back online after extensive site
upgrades
· Significant upgrades underway at flagship Wressle production site
onshore UK
· Three well 2025 H2 drilling programme commenced in Oklahoma with the
Sark well currently undergoing production testing
The Half Yearly results are operationally positive with the Company remaining
in a strong position, free of debt, retaining a robust balance sheet and
holding a balanced portfolio of production assets on both sides of the
Atlantic, complemented with numerous drilling and development projects that
are either currently active or are planned for the near future.
Union Jack's asset strategy and geographical diversification delivers
durability across its key projects, encompassing both the UK and the USA.
In the six month period under review, although the Company recorded a gross
profit of £454,401, an operating loss of £489,674 was reported. These
figures reflect a sharp decline in the oil price and a continuing downward
trend in the value of the US dollar against Sterling.
Progress has been seen throughout the period under review, both in the UK and
in Oklahoma USA, our additional area of focus where we have experienced
material success with the Moccasin1-13 oil discovery, now in production,
producing at a restricted gross 60+ barrels of oil per day.
Net barrels of oil equivalent production per day ("boepd") across the
production portfolio in the six months under review averaged 149 boepd (2024:
198 boepd) and is currently producing at circa 164 boepd.
Cash flows from our exceptional flagship development, Wressle (Union Jack 40%)
and the Keddington Oilfield (Union Jack 55%), where production has recently
been reinstated following site upgrades, continue to bolster the Company's
Balance Sheet and are contributing significantly to its financial well-being.
At Wressle, the development programme is progressing, with preparation for new
wells and gas monetisation which will enhance production and eliminate routine
flaring. In parallel, the site's surface facilities are being upgraded to
optimise current and future production efficiencies.
West Newton, another key project within Union Jack's portfolio, retains the
potential to surprise positively. Reabold Resources plc, the indirect majority
holder of PED183, is working closely with the Company to extract the material
value that we feel is present within the licence area.
To date, our discovery success rate in the USA has been 100%. There will
likely be some highs and lows in our quest for growth, however, I remain
confident that our increased activity will accelerate progress and continue to
support our growth ambitions going forward.
During July 2025, the Company raised £2,000,000 before expenses via a
placing, bringing some welcomed quality institutional investors to our
shareholder register. The net proceeds are being used to conduct a three well
drilling programme in Oklahoma with our drilling partners, Reach Oil & Gas
Inc. ("Reach"). During the remainder of 2025, Union Jack will be involved in
testing and completion of Sark, followed by drilling of the Crossroads and
Wolverine wells in Oklahoma.
The Company has a clear focus and the funding in place to complete its
Oklahoma drilling programme.
Meanwhile, in the UK, we are beginning to see some distinct signs of life in
the supressed oil and gas sector and are keeping a watchful eye on wider
industry developments as major international oil companies including BP return
their focus to their "grass roots" E&P businesses. We are encouraged by
this and will continue to pursue our own goals of production expansion and
development at our key projects.
Additional information on the Company's projects within the UK and USA can be
found within the Operational Review following this statement.
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.
I take this opportunity to thank our shareholders both old and new 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
29 September 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.
To date, over 735,000 barrels of high-quality oil have been produced and sold
from Wressle.
During the period, Wressle produced on constrained flow an average of 298
barrels of oil per day ("bopd"), Union Jack net 120 bopd.
• Average oil price of US$71.00 (2024: US$80.76)
• Average water cut of 37% (2024: 32%)
• Site downtime of 3 days for the period
Produced water is easily managed and disposed of at a nearby facility.
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 were 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 quashed 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 reassessed.
The Board believes that the Company's interest in Wressle will continue to
deliver significant revenues for at least the next decade and look forward to
the future with enthusiasm, with the expectation of crystallising the
additional value of this primary asset as soon as the required regulatory
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.
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.
Rathlin 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 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.
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. In particular, Rathlin has been
looking at development concepts that would co-locate gas-powered generators
and cryptocurrency mining equipment at the West Newton A and B sites, which
would be fuelled by the natural gas produced at those locations.
During August 2025, Union Jack were informed by Rathlin of initial plans for
early monetisation of gas production through a new cryptocurrency mining
operation.
• Rathlin has conducted a feasibility study and evaluated the
potential for an early development and monetisation strategy, using gas to be
produced from the existing discovery wells to generate on-site electricity to
power cryptocurrency mining activities
• Rathlin, on behalf of the Joint Venture partnership which also
includes Reabold Resources plc, has entered into a non-binding Letter of
Intent ("LOI") with a Texas-based company, 360 Energy Inc. ("360 Energy"), a
natural gas offtake and monetisation provider, to design a Bitcoin mining
solution at West Newton, subject to receipt of regulatory and third-party
approvals
• The Joint Venture partners believe that cryptocurrency mining
offers an innovative and significant near-term value generating opportunity,
providing early production and cash flow in advance of any planned full gas
field development decision
On behalf of the Joint Venture partnership, Rathlin has entered into a
non-binding LOI with 360 Energy, a natural gas offtake and monetisation
provider, headquartered in Austin, Texas, USA. Under the terms of the LOI,
both parties will work to scope, design and subject to regulatory and
third-party approvals, deploy 360 Energy's proven In-Field Computing ("IFC")
technology, designed to convert natural gas produced at West Newton to power
on-site data centres, generating revenues from Bitcoin production. Whilst at
an early conceptual stage, preliminary economic estimates indicate that
cryptocurrency mining could deliver attractive returns.
The LOI envisages the IFC initially being deployed at the West Newton A site,
converting natural gas from the WNA-2 well into Bitcoin, subsequently being
expanded to encompass other discoveries. The relationship with 360 Energy has
the potential to enable the Joint Venture partners to realise significant
returns from natural gas volumes via wells that would not otherwise contribute
to either the early production scheme or the full field development.
The Joint Venture partners are working towards entering a binding definitive
agreement with 360 Energy that is expected to be based on the terms outlined
in the LOI.
360 Energy provides next-generation solutions for natural gas offtake and
monetisation in the hydrocarbon industry. The proprietary IFC platform
captures stranded, flared or uneconomic gas and converts it to electricity for
powering modular data centres on-site. 360 Energy is at the forefront of
integrating advanced computing with traditional energy production to help
project partnerships to earn more and flare less.
Onshore developers have been forced to "think outside the box" in order to
make progress and deliver growth. The Board of Union Jack believes this
proposed concept to produce Bitcoin through mining operations is innovative,
offers strong scope for a sustainable return and could lead to the Company
introducing a new Bitcoin Treasury strategy on success.
In the opinion of the Board, the upside potential at West Newton remains very
much intact.
KEDDINGTON OILFIELD - 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 and the early part of 2025, a major upgrade of the site's
production infrastructure was undertaken.
Production recommenced during June 2025 and to date, over 3,000 barrels of
high-quality oil have been produced and sold from Keddington.
The newly installed equipment and facilities are working well and continue to
be fine-tuned to optimise production.
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.
FISKERTON AIRFIELD - EXL294 (20%)
Fiskerton Airfield (EXL294) is currently shut in. Longer term potential for
the site is to be used to manage produced water from other locations through
the existing water injection well on-site.
UNITED STATES OF AMERICA STRATEGIC GROWTH AND EXPANSION PLAN
For numerous reasons, including the punitive Energy Profits 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 since that time 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.
H2 2025 OKLAHOMA DRILLING PROGRAMME
A three well drilling programme is underway in Oklahoma, comprising the Sark,
Crossroads and Wolverine wells, with all targets imaged and supported by 3D
seismic.
Sark has been drilled, target depth reached and a zone of interest, the Prue,
will be undergoing a 30 day production test programme, due to commence in
October 2025.
The Crossroads well, planned to be spudded in Q4 2025 will penetrate a large
100 acre structure in the prolific Oil Creek Sand.
The chance of success is 40% with an estimated recoverable resource over
multiple target zones of circa 1,670,000 barrels of oil gross, according to
the Operator.
Success case NPV10 is approximately US$11,600,000 net based on a US$65 per
barrel oil price.
The Wolverine-1 well will be drilled into the western crest of a producing
field with an estimated chance of success of 80%, with an estimated gross
recoverable resource over multiple target zones of circa 1,310,000 barrels of
oil.
Wolverine-1 is planned to be spudded during Q4 2025, will test multiple
potential reservoirs within enclosure to the Arbuckle, and reservoir quality
is deemed exceptional by the Operator.
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 72,000,000 cubic feet of clean natural gas and 10,000 barrels of
high-quality oil with an average API gravity 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 the Andrews Field are remarkably low, currently
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
net-backs.
The drilling of West Bowlegs, 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%)
During February 2025, the Moccasin 1-13 well ("Moccasin"), located in
Pottawatomie County, Oklahoma 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 and declared a commercial discovery.
Moccasin was an untested structural prospect with several targets, both
primary and secondary. The structure is 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 interbedded 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.
Moccasin is currently being evaluated and is on test production, producing at
a highly constrained rate of circa 60+ barrels of oil per day gross, prior to
determining the optimal 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 11,000 barrels of oil have been produced.
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 - (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
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 re-processed 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 Andrews 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
In 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.
During the period the Mineral Royalties portfolio delivered attractive returns
in excess of 18% by contributing revenues of £69,438.
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 Mineral 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 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.
UNAUDITED INCOME STATEMENT
FOR THE SIX MONTHS ENDED 30 JUNE 2025
Notes Six Months Six Months Year
Ended
Ended
Ended
30 June 2025
30 June 2024
31 December 2024
Unaudited
Unaudited
Audited
£
£
£
Revenue 1,286,742 2,338,710 3,929,722
Cost of sales - operating costs (645,796) (723,910) (1,443,518)
Cost of sales - depreciation (161,262) (213,989) (398,654)
Cost of sales - Net Profit Interest payment (25,283) (62,035) (119,449)
Gross profit 454,401 1,338,776 1,968,101
Administrative expenses (excluding impairment charge) (1,058,021) (854,882) (1,878,089)
Impairment - (2,100) (10,148)
Total administrative expenses (1,058,021) (856,982) (1,888,237)
Operating (loss) / profit (603,620) 481,794 79,864
Finance income 12,497 81,582 129,617
Royalty income 69,438 120,268 196,737
(Loss) / profit before taxation (521,685) 683,644 406,218
Taxation 3 32,011 105,352 242,995
(Loss) / profit for the period / year (489,674) 788,996 649,213
Attributable to: (489,674) 788,996 649,213
Equity shareholders of the Company
(Loss) / earnings per share 2 (0.46) - -
0.74
0.61
Basic (pence)
Diluted (pence) 2 (0.45) 0.74 0.60
UNAUDITED STATEMENT OF COMPREHENSIVE INCOME
FOR THE SIX MONTHS ENDED 30 JUNE 2025
Six Months Six Months Year
Ended
Ended
Ended
30 June 2025
30 June 2024
31 December 2024
Unaudited
Unaudited
Audited
£
£
£
(Loss) / profit for the period / year (489,674) 788,996 649,213
Items which will not be reclassified subsequently to (loss) / to profit
Other comprehensive income
Loss on investment revaluation - (404,114) (408,792)
Total comprehensive (loss) / profit for the period / year (489,674) 384,882 240,421
UNAUDITED BALANCE SHEET
AS AT 30 JUNE 2025
Notes As at As at As at
30 June 2025
30 June 2024
31 December 2024
Unaudited
Unaudited
Audited
£
£
£
Assets
Non-current assets
13,289,769 12,842,734 12,417,318
Exploration and evaluation assets
Property, plant and equipment 7,951,509 6,015,108 7,691,397
Investments 121,320 125,998 121,320
Deferred tax asset 347,330 212,190 221,110
21,709,928 19,196,030 20,451,145
Current assets
Inventories 23,105 12,035 11,149
Trade and other receivables 396,318 2,068,177 855,980
Cash and cash equivalents 1,414,149 3,148,939 2,527,831
1,833,572 5,229,151 3,394,960
Total assets 23,543,500 24,425,181 23,846,105
Liabilities
Current liabilities
Trade and other payables 315,279 489,212 222,894
Non-current Liabilities 1,689,215 1,654,342 1,688,740
Provisions
Deferred tax liability 157,929 - 63,720
1,847,144 1,890,337 1,752,460
Total liabilities 2,162,423 2,143,554 1,975,354
Net assets 21,381,077 22,281,627 21,870,751
Capital and reserves attributable to the Company's equity shareholders
Share capital 4 7,514,576 7,514,576 7,514,576
Share-based payments reserve 712,634 712,634 712,634
Treasury reserve (1,736,700) (1,736,700) (1,736,700)
Accumulated profit 14,890,567 15,791,117 15,406,236
Total equity 21,381,077 22,281,627 21,870,751
UNAUDITED STATEMENT OF CASH FLOWS
FOR THE SIX MONTHS ENDED 30 JUNE 2025
Six months Six months Year
ended
ended
ended
30 June 2025
30 June 2024
31 December 2024
Unaudited
Unaudited
Audited
£
£
£
Cash flow from operating activities (32,537) 418,574 344,371
Cash flow from investing activities (926,693) (2,220,938) (1,596,514)
Purchase of intangible assets
Purchase of property, plant and equipment (252,141) (328,582) (2,469,451)
Fixed term deposit - - 1,000,000
Royalties received 85,192 - 187,921
Interest received 12,497 81,582 129,617
Net cash used in investing activities (1,081,145) (2,467,938) (2,748,427)
Cash flow from financing activities
Dividends paid - - (266,416)
Net cash used in financing activities - - (266,416)
Net decrease in cash and cash equivalents (1,113,682) (2,049,364) (2,670,472)
Cash and cash equivalents at beginning of financial year 2,527,831 5,198,303 5,198,303
Cash and cash equivalents at end of financial year 1,414,149 3,148,939 2,527,831
NOTES TO THE UNAUDITED FINANCIAL INFORMATION
FOR THE SIX MONTHS ENDED 30 JUNE 2025
1 Accounting Policies
Basis of Preparation
These financial statements are for the six month period ended 30 June 2025.
The information for the year ended 31 December 2024 does not constitute
statutory financial statements as defined in section 434 of the Companies Act
2006.
A copy of the statutory financial statements for that period has been
delivered to the Registrar of Companies. The Auditor's Report was not
qualified, did not include a reference to any matters to which the Auditor
drew attention by way of emphasis without qualifying the report and did not
contain statements under section 498(2) or (3) of the Companies Act 2006.
The interim financial statements for the six months ended 30 June 2025 are
unaudited.
The interim financial information in this report has been prepared in
accordance with International Financial Reporting Standards ("IFRS") applied
in accordance with the provisions of the Companies Act 2006.
The financial statements have been prepared under the historical cost
convention. The principal accounting policies have been consistently applied
to all periods presented.
Significant Accounting Policies
The accounting policies and methods of computation followed in the interim
financial statements are consistent with those as published in the Company's
Annual Report and Financial Statements for the year ended 31 December 2024.
The Annual Report and Financial Statements are available from the Company
Secretary at the Company's registered office, 6 Charlotte Street, Bath BA1 2NE
or on the Company's website www.unionjackoil.com
Going Concern
The directors have, at the time of approving the half yearly financial
statements, a reasonable expectation that the Company has adequate resources
to continue in operational existence for the foreseeable future and continue
to adopt the going concern basis of accounting.
2 (Loss) / Profit per Share Attributable to the Equity
Shareholders of the Company
Basic (loss) / profit per share is calculated by dividing the earnings
attributable to ordinary shareholders by the weighted average number of
ordinary shares outstanding during the period.
Basic (loss) / profit per share Six months Six months Year
ended
ended
ended
30 June 2025
30 June 2024
31 December 2024
Pence
Pence Pence
(Loss) / profit per share from continuing operations
- Basic (0.46) 0.74 0.61
- Diluted (0.45) 0.74 0.60
The (loss) / profit and weighted average number of ordinary shares used in the
calculation of basic (loss) / earnings per share are as follows:
Basic (loss) / profit per share Six months Six months Year
ended
ended
ended
30 June 2025
30 June 2024
31 December 2024
£
£
£
(489,674)
(Loss) / profit used in the calculation of total basic and diluted earnings
per share
788,996 649,213
Number of Shares Six months Six months Year
ended
ended
ended
30 June 2025
30 June 2024
31 December 2024
Weighted average number of ordinary
shares for the purposes of basic and
diluted earnings per share
- Basic 106,565,896 106,565,896 106,565,896
- Diluted 107,915,896 106,565,896 107,915,896
Treasury Shares
As at 30 June 2025, the Company held 6,300,000 of its ordinary shares in
treasury. These shares are not included in the earnings per share calculation.
There are no current plans to cancel these shares.
3 Taxation
Consistent with the year-end treatment, current and deferred tax assets and
liabilities have been calculated at tax rates which were expected to apply to
their respective period of realisation at the period end. The Energy Profits
Levy for the year 2025 has been increased to 38% and the CAPEX relief
decreased to 100%. OPEX relief remains at 100%.
4 Share Capital
At 30 June 2025, there were 112,865,896 ordinary shares of a nominal value of
5 pence in issue.
At 30 June 2025, there were 831,680,400 deferred shares of 0.225 pence nominal
value in issue.
5 Events after the Balance Sheet Date
Institutional share placing raised gross proceeds of £2,000,000.
Keddington Oilfield, onshore UK, back online after extensive site upgrades.
Significant upgrades underway at flagship Wressle production site onshore UK.
Three well 2025 H2 drilling programme commenced in Oklahoma with the Sark well
currently undergoing production testing.
6 Related party transactions
Charnia Resources (UK), an unincorporated entity owned by Graham Bull,
non-executive director, received from the Company the sum of £60,378 during
the period under review in respect of consulting fees. £12,151 was
outstanding at the end of the period.
Jayne Bramhill, spouse of David Bramhill, received from the Company the sum of
£5,400 during the period under review in respect of IT maintenance and
administration costs.
7 Copies of the Half Yearly Report
A copy of the Half Yearly Report is now available on the Company's website
www.unionjackoil.com
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