Union Jack Oil has emerged from 2024 with a strong financial and operational profile that positions it well for continued investor interest. Backed by solid profits, zero debt, and strategic developments across both the UK and US, the company is showing that disciplined growth and shareholder returns can go hand in hand.
For the year ended 31 December 2024, Union Jack Oil reported a gross profit of £1.97 million and a net profit of £649,213. While this is a decrease from 2023’s figures, the company has maintained profitability without taking on debt—an increasingly rare trait in the energy sector. Union Jack’s ability to remain cash-generative while funding operations from its own balance sheet is a clear sign of financial resilience.
Operationally, the company made substantial progress. In the UK, the Wressle development was a standout, with 2P reserves upgraded by an impressive 263% following a Competent Person’s Report. This uplift highlights the continued commercial viability of the field, especially in the Penistone Flags formation. West Newton also strengthened its credentials, receiving a top-tier AA rating for carbon intensity from GaffneyCline—signalling the asset’s potential as a low-emissions energy contributor.
In the United States, Union Jack’s strategy is delivering tangible results. The Andrews 1‑17 and 2‑17 wells in Oklahoma are now in commercial production, with Taylor 1‑16 awaiting completion. The company also took a 45% stake in the Rogers Secondary Recovery Project, where early indicators show positive pressure build-up, hinting at future yield. Additionally, the Moccasin 1‑13 well has begun producing from the First Wilcox formation, with appraisal drilling continuing into 2025.
Union Jack has also been acquiring and managing revenue-generating mineral royalty interests across prolific shale plays, including the Bakken, Permian, and Eagle Ford. These assets have produced over 25% returns on original investment, adding consistent cash flow to the company’s financial base while expanding its US footprint.
Despite a year-on-year revenue dip to £3.93 million from £5.07 million, Union Jack’s profitability metrics remain healthy, and its balance sheet is entirely unencumbered by debt. This leaves the company well-positioned to reinvest in existing assets and pursue further development without shareholder dilution or excessive risk.
Upcoming milestones include the release of its 2024 Annual Report by late May and its AGM scheduled for 27 June 2025 in Bristol. Shareholders will be watching for updates on Wressle development plans, further clarity on West Newton’s appraisal timeline, and progress across Union Jack’s US portfolio.
Union Jack Oil plc (LON:UJO) is an oil and gas company with a focus on onshore production, development, exploration and investment opportunities within the United Kingdom and the United States of America hydrocarbon sector.
