Union Jack Oil plc, a profitable UK and USA focused onshore hydrocarbon production, development, exploration and investment company, is pleased to announce its audited results for the year ended 31 December 2024.
Copies of the Company's Annual Report will be posted to shareholders on or before 26 May 2025 and will be available on the Company's website: www.unionjackoil.com. The Company's AGM will be held in the George White Suite at The Bristol Hotel, Prince Street, Bristol BS1 4QF on Friday 27 June 2025 at 11.00 a.m.
Operational Highlights
• Wressle Competent Person's Report ("CPR") upgrades 2P Reserves by 263%
• West Newton Carbon Intensity Study given AA rating by GaffneyCline Associates
• Successful Andrews 1-17 and Andrews 2-17 oil and gas discovery wells in Oklahoma, USA, now in commercial production
• The Taylor 1-16 well in Oklahoma awaiting completion of the Hunton and Cromwell formations
• Commencement of the UK onshore Keddington Oilfield upgrade
• Acquisition of a 45% interest in the Rogers Secondary Recovery Project in Oklahoma, with post balance sheet positive results seen in pressure build up
• Further acquisition of revenue generating Mineral Royalty packages in the Bakken Shale, Permian Basin and Eagle Ford Shale, USA, delivering pleasing returns in excess of 25% on original investment
• Post Balance Sheet date, successful Moccasin 1-13 oil discovery in Oklahoma, now in production from the 1st Wilcox formation with two further oil-bearing formations to be completed
Financial Highlights
• Gross profit of £1,968,101 (2023: £3,298,844)
• Net profit of £649,213 (2023: £859,089)
• Basic earnings per share 0.61 pence (2023: 0.79 pence)
• Oil and gas revenues £3,929,722 (2023: £5,065,679)
• The Company continues to be debt free
David Bramhill, Executive Chairman, commented:
"The Board's confidence has once again been supported by the Company's profitable 2024 financial results, confirming its resilience, both financially and operationally.
"In the UK, Union Jack will remain focused on the development of its flagship project, Wressle, where the Operator and Joint Venture partners have high-value appraisal and development programmes planned for the future, in particular the unlocking of the material proven reserves of oil and gas that remain in place within the Penistone Flags formation. The Board is confident that within the Wressle development there remains significant upside which will support the Company with revenues for at least another decade.
"I also look forward to progress at West Newton. Encouragingly, the results from this key project, to date, signal a potentially highly valuable onshore project with resources comparable to those usually reported offshore. A significant onshore domestic gas resource, as indicated at West Newton, has the potential to become an important transition fuel in helping the UK achieve its 2050 Net Zero emissions target.
"At time of writing, Keddington is expected to be, following site upgrades, close to being operational and poised to deliver the Company additional revenues.
"Union Jack's initial success in the USA over the past 12 months, highlights the ease of entry and ability to execute our business in that country, justifying the Board's decision to seek further growth opportunities internationally to bolster the Company's robust production and appraisal assets in the United Kingdom.
"Our appetite for additional growth opportunities has been whetted by our recent positive experiences in the USA and discussions are at an advanced stage with Reach in respect of expanding our activities over the coming months and beyond.
"I believe the Board's optimism in our further expansion in the USA, executed alongside a proactive drilling and development campaign, will deliver material rewards in due course.
"I am confident that the increase in drilling, appraisal and development activity being evaluated in the pursuit of growth from our balanced UK and USA portfolios has the potential for notable value creation for shareholders. We believe our heightened activity and the expected additional news-flow generated, combined with effective investor engagement on both sides of the Atlantic, will continue to attract the ongoing support of our existing shareholders and the attention of new investors, broadening the appeal of the Company to a wider audience.
"The Company retains a strong Balance Sheet and a clear focus on the development of its assets both in the UK and the opportunity-charged USA. This includes a balanced portfolio of Mineral Royalties, along with the production assets that are now assembled, that are expected to contribute meaningful revenue and growth opportunities going forward.
"I take this opportunity to thank our shareholders for their continued support, as well as my co-directors and advisers, both in the UK and USA, all of whom continue to contribute towards the development and growth of the Company.
"The future of Union Jack remains bright."
CHAIRMAN'S STATEMENT
I am delighted to present to the shareholders of Union Jack Oil plc ("Union Jack" or the "Company"), a profitable onshore UK and USA focused hydrocarbon production, development and investment Company, the Annual Report and Financial Statements for the year ended 31 December 2024.
Having been originally UK onshore focused, I reflect on the past 12 months with satisfaction, having pursued an additional cash flow driven growth strategy, concentrated in the USA to complement our excellent revenue generating onshore projects in the United Kingdom, namely Wressle and Keddington.
During a relatively short period, this strategy has delivered excellent results and offers further catalysts for growth that provide me with confidence in the future of Union Jack.
In Oklahoma, USA, where our drilling activities are focused, the oil industry remains central to its economy, with new drilling technologies revitalising and unlocking new resources, making the state a top US hydrocarbon producer.
Our geographic expansion and strategic partnership in the United States with our very capable drilling partner Reach Oil & Gas Inc. ("Reach"), is already contributing revenues from a portfolio of US onshore production and development assets. We are delighted to have now drilled four exploration wells with a 100% success rate. In addition, we have also selectively expanded our US portfolio of revenue-generating, high-return Mineral Royalties.
The financial and operational results for 2024 are positive, with the Company remaining profitable for the third consecutive year, free of debt and in possession of a balanced work programme of potentially transformational development and drilling activities, encompassing both sides of the Atlantic.
Profitability continued throughout the period under review, thanks mainly to the cash flow from our 40% interest in the exceptional UK flagship project, Wressle. This development continues to produce at the top end of the CPR production profile forecast and from which revenues continued to bolster the Company's Balance Sheet, enabling Union Jack to announce a net profit. Additionally, revenues from our rapidly expanding activities in the USA for the full year contributed to our bottom line.
The ERC Equipoise Limited ("ERCE") CPR in respect of Wressle and Broughton North, announced in January 2024, matched our high expectations, demonstrating a 263% increase in 2P Reserves to 2.373 million barrels of oil equivalent ("boe") gross, adding significant additional value to a material project within Union Jack's production and development portfolio within the UK.
West Newton, another key onshore project within Union Jack's portfolio, with impressive Contingent Resources reported within the RPS Group Limited ("RPS") CPR, is expected to see future activity.
A further UK based project, Keddington, where Union Jack holds a 55% interest, has been the subject of material upgrades and is in readiness for resumption of production in the near future.
The decision made to seek further growth opportunities in the USA, where operations can be executed unhindered and a sensible and fair tax policy is applied, was a correct one. Union Jack's relationship with Reach, based in Oklahoma, has grown over the past year and our Joint Ventures with highly engaged partners have prospered, especially with the success of the Moccasin 1-13 well, post Balance Sheet date.
During 2024, Union Jack entered into a number of Joint Ventures with Reach to drill wells in Oklahoma. The first two wells drilled on the 45% held West Bowlegs Prospect, the Andrews 1-17 and the Andrews 2-17, now named the Andrews Field, are predominantly gas producers, penetrating the primary objective, the Hunton Limestone, one of the main hydrocarbon reservoirs in Oklahoma.
The Board has high expectations of Union Jack's USA ventures, guided by both Reach's
and Union Jack's very able technical teams, already confirmed by the success of the Moccasin 1-13, Andrews 1-17, Andrews 2-17 and Taylor 1-16 discoveries.
Following this initial success, Union Jack and Reach are in the process of identifying a number of additional material drilling targets that could deliver a dynamic drilling campaign for the future, with a range of risks and reserves across Southern Oklahoma.
Additional information on the Company's projects within the UK and USA can be found within the Operational Review.
CORPORATE AND FINANCIAL
The 12 month period under review has, for the third consecutive year, seen Union Jack remain a cash generating and profitable entity.
Revenues from oil and gas sales of £3,929,722 (2023: £5,065,679) reported for the period continued to have a positive effect on the Income Statement, resulting in the Company being able to report a gross profit of £1,968,101 (2023: £3,298,844), and net profit of £649,213 (2023: £859,089).
Basic Earnings per share of 0.61 pence were reported (2023: 0.79 pence).
The Company has a policy of returning cash to shareholders when deemed appropriate.
Since the commencement of our dividend policy and share buy-back programme, approximately £3,000,000 has been returned to shareholders.
The Company holds 6,300,000 ordinary shares in Treasury which increase the Earnings Per Share, hold no voting rights and are not entitled to a dividend payment.
To increase the Company's corporate visibility in the USA, in April 2024, Union Jack's ordinary shares were admitted to trading on the OTCQB Venture Market (Ticker: UJOGF). The Board believes that dual trading of the Company's shares on AIM and the OTCQB will provide enhanced investor benefits, which include easy trading access for investors based in the USA and increased liquidity, due to a broader geographic pool of potential investors.
Ray Godson made the decision to step down from the Board of Union Jack at the 2024 AGM and Craig Howie joined the team as an independent non-executive director during April 2024. Craig has over 20 years of City and advisory experience, especially within the oil industry and is well known within his peer group in respect of his knowledge of oil enterprises, both junior and major.
Further information can be found on the Company's website www.unionjackoil.com, presenting detailed technical information on Union Jack's projects and designed to inform shareholders and attract new investors to the Company.
In addition, Union Jack hosts a growing and active X account @unionjackoilplc.
OUTLOOK
The Board's confidence has once again been supported by the Company's profitable 2024 financial results, confirming its resilience, both financially and operationally.
In the UK, Union Jack will remain focused on the development of its flagship project, Wressle, where the Operator and Joint Venture partners have high-value appraisal and development programmes planned for the future, in particular the unlocking of the material proven reserves of oil and gas that remain in place within the Penistone Flags formation. The Board is confident that within the Wressle development there remains significant upside which will support the Company with revenues for at least another decade.
I also look forward to progress at West Newton. Encouragingly, the results from this key project, to date, signal a potentially highly valuable onshore project with resources comparable to those usually reported offshore. A significant onshore domestic gas resource, as indicated at West Newton, has the potential to become an important transition fuel in helping the UK achieve its 2050 Net Zero emissions target.
At time of writing, Keddington is expected to be, following site upgrades, close to being operational and poised to deliver the Company additional revenues.
Union Jack's initial success in the USA over the past 12 months, highlights the ease of entry and ability to execute our business in that country, justifying the Board's decision to seek further growth opportunities internationally to bolster the Company's robust production and appraisal assets in the United Kingdom.
Our appetite for additional growth opportunities has been whetted by our recent positive experiences in the USA and discussions are at an advanced stage with Reach in respect of expanding our activities over the coming months and beyond.
I believe the Board's optimism in our further expansion in the USA, executed alongside a proactive drilling and development campaign, will deliver material rewards in due course.
I am confident that the increase in drilling, appraisal and development activity being evaluated in the pursuit of growth from our balanced UK and USA portfolios has the potential for notable value creation for shareholders. We believe our heightened activity and the expected additional news-flow generated, combined with effective investor engagement on both sides of the Atlantic, will continue to attract the ongoing support of our existing shareholders and the attention of new investors, broadening the appeal of the Company to a wider audience.
The Company retains a strong Balance Sheet and a clear focus on the development of its assets both in the UK and the opportunity-charged USA. This includes a balanced portfolio of Mineral Royalties, along with the production assets that are now assembled, that are expected to contribute meaningful revenue and growth opportunities going forward.
I take this opportunity to thank our shareholders for their continued support, as well as my co-directors and advisers, both in the UK and USA, all of whom continue to contribute towards the development and growth of the Company.
The future of Union Jack remains bright.
David Bramhill, Executive Chairman
