Union Jack Oil (AIM:UJO) Unlocks Value with New Discoveries and Operational Milestones

Highlights

• Brent crude prices reached a near five-month high of USD 76.64, as of 18 June 2025, amid rising Middle East tensions.
• OPEC maintained its global oil demand growth forecast at 1.3 mb/d for both 2025 and 2026.
• Union Jack declared its US-based Moccasin 1-13 well a commercial discovery, with test flow rates averaging over 600 bopd.
• Expansion into key U.S. basins has delivered investment returns exceeding 25%.
• In the UK, Wressle oilfield 2P reserves were upgraded by 263% and West Newton received an AA carbon intensity
• In FY24, the company recorded revenue of GBP 3.93 million and a net profit of GBP 649,213.

Oil markets remain volatile as geopolitical tensions between Iran and Israel stretch into a seventh consecutive day. The ongoing conflict has pushed Brent crude prices to a near five-month high of USD 76.64, as of 18 June 2025, driven by supply concerns.

Adding to this bullish sentiment, the Organization of the Petroleum Exporting Countries (OPEC) maintains a positive outlook, expecting global economic resilience in the second half of 2025 despite growing trade friction. OPEC forecasts global oil demand to grow by 1.3 million barrels per day (mb/d) in both 2025 and 2026.

Against this favourable backdrop, Union Jack Oil plc (AIM:UJO), a UK and US-focused onshore hydrocarbon production, exploration and investment company, is capturing attention with a series of operational milestones across its portfolio.

U.S. Momentum Builds: Moccasin 1-13 Declared a Commercial Discovery

Union Jack has formally declared its Moccasin 1-13 well in Oklahoma a commercial discovery, marking a key milestone in its U.S. growth strategy.

The company holds a 45% working interest in the well, with the remaining interest held by operator - Reach Oil & Gas Company Inc.

Initial testing from the Wilcox formation showed an average flow rate of over 600 barrels of oil per day (bopd) across several test intervals. The formation is naturally flowing with minimal gas and no formation water—an encouraging indicator of reservoir health and potential.

Moccasin is currently being evaluated and is on test production, producing at a highly constrained rate of circa 80-100 barrels of oil per day, prior to determining the rate for maximum ultimate oil recovery.  The company has installed permanent production facilities, including oil storage tanks and flowlines, and commercial oil sales have commenced.

Deeper Potential: Multi-Zone Upside and US Expansion

Beyond the Wilcox formation, hydrocarbon trapping has been confirmed in multiple zones. Union Jack plans to perforate and evaluate two additional formations—the Red Fork and Bartlesville Sandstone, potentially increasing production further.

In addition to Moccasin, Union Jack’s Andrews 1-17 and 2-17 wells in Oklahoma are already in commercial production. The company has also expanded its portfolio through revenue-generating mineral royalty packages in the Permian Basin, Bakken Shale and Eagle Ford Shale, with returns exceeding 25% on original investments.

UK Portfolio Strengthens: Wressle and Beyond

Union Jack remains focused on the development of its flagship project, Wressle in the UK. The Wressle oilfield has seen a 263% upgrade in 2P reserves, according to a new Competent Person's Report (CPR). The company expects the Wressle development to provide significant upside and support revenues for at least another decade.

Sustainability remains a focus. The West Newton Carbon Intensity Study received an AA environmental rating from GaffneyCline Associates. The company has also commenced upgrade works at the Keddington Oilfield.

Financial Performance in FY2024

For the financial year ended 31 December 2024, Union Jack reported a gross profit of GPB 1.97 million, a net profit of GPB 649,213, and total oil and gas revenues of GPB 3.93 million.

Union Jack Oil’s strategic expansion into the U.S., combined with production from Moccasin and profitable UK assets, positions the company for continued growth. With oil prices remaining elevated and multiple revenue-generating assets online, the company continues to capitalise on growth opportunities in the onshore energy market. Top of Form

UJO shares traded at GBX 9.29 per share on 23 June 2025.