Union Jack Oil PLC (AIM:UJO, OTCQB:UJOGF, FRA:1UJ0) on Friday gave investors a project update, across both its UK and US portfolio, and highlighted that a programme focussed on costs and efficiencies is expected to deliver improved net cash flow.
In the UK, the company said its Wressle field in Lincolnshire remains one of the most productive conventional oilfields in the country. Average gross production during January 2026 was about 267 barrels of oil per day (on full production days, the range is between 267 and 339 bopd).
Union Jack said site upgrades and facility improvements at Wressle are continuing. It said the work is aimed at improving efficiency, optimising production and eliminating routine flaring. It also referenced 2P reserves of over 2.3 million barrels of oil equivalent, based on ERCE’s competent persons report published in December 2023. The joint venture is awaiting regulatory approvals for planning and permit applications for the next phase of development.
At the Keddington Oilfield, in Lincolnshire, where Union Jack holds a 55% interest, the company said a major upgrade during 2025 enabled the site to return online in June, and since then more than 5,000 barrels of oil have been produced and sold. Current gross production during January is about 36 bopd, the firm noted. Union Jack also noted that planning permission is in place to drill two further wells.
At West Newton, also onshore UK, where past drilling programmes have yielded hydrocarbon discoveries, it cited an independent resource assessment by RPC indicating a contingent resource of 198.00 billion cubic feet of gas. Union Jack also said its technical team has identified additional targets indicating prospective gas resources in an untested formation. The operator, Rathlin Energy, has a 2026 work programme planned, subject to receipt of regulatory consents.
In the US, meanwhile, Union Jack highlighted that since late 2023 it has acquired ownership interests in drilling, development and production projects in Oklahoma. It has formed a drilling partnership with Reach Oil and Gas and built a mineral royalty portfolio in the Permian Basin, Bakken Shale and Eagle Ford Shale.
Today, Union Jack said its Oklahoma activities with Reach remain cash flow positive, and that's expected to persist even through the low oil price scenarios that the sector is experiencing.
At Moccasin 1-13, where Union Jack has a 45% interest, the company said the well encountered hydrocarbons in three zones. The 1st Wilcox Sand was perforated and production was established last February. Union Jack said the well has produced about 18,000 barrels and is currently producing around 50 bopd. It said the Red Fork and Bartlesville sands remain “behind pipe” for potential perforation at a later date. Union Jack also said it has purchased 3D seismic over the prospect area and mapping is underway.
Union Jack said the Crossroads well is now scheduled to be drilled in Q1 2026 following regulatory delays. It described Crossroads as a structural prospect mapped from 3D seismic. The main objective is oil in the middle Ordovician Oil Creek Sand. Union Jack cited a potential of up to 1.80 million barrels of oil and a success case NPV10% of US$11.00 million based on a US$60 per barrel oil price.
At Taylor 1-16, Union Jack said the Cromwell formation was perforated and returned oil that has been sold to the market. It said a nitrogen foam treatment is scheduled in Q1 to enhance production. Union Jack described nitrogen foam as a stimulation technique used in sandstone reservoirs that combines liquid nitrogen with a small volume of water and surfactant to create a stable foam that carries proppant into induced fractures.
At Andrews Field, comprising the Andrews 1-17 and 2-17 wells, Union Jack said production is in excess of 100 thousand cubic feet of gas per day plus a small amount of oil sold to market. It said cumulative production is over 100 million cubic feet of gas and more than 10,000 barrels of oil.
Executive chairman David Bramhill said the Oklahoma portfolio "holds serious upside potential" and that management looks forward with positive anticipation to upcoming results at the Taylor and Crossroads properties.
"In light of the current oil price environment, a programme focused on costs and efficiencies is being implemented that is expected to improve net cash flow at the corporate level going forward," Bramhill highlighted.
He added: "The potential revenues from an expansion at Wressle and a development at West Newton are expected to be material to the Company. I have no doubt that the current attitude towards fossil fuels will change for the better in the UK and it is a waiting game for the significant commercial and strategic costs of the energy transition to become evident compared to the many merits of maintaining and encouraging domestic oil and gas production."