Union Jack Oil (LON:UJO), a notable player in the Oil & Gas Producers industry, has declared a final dividend of 0.25p per share for the year 2023, following an interim dividend of 0.30p per share paid earlier in the year. This announcement was highlighted in a recent research note disclosure by Zeus Capital Analyst Daniel Slater, emphasising the company’s robust cash generation capabilities and its ongoing commitment to rewarding shareholders.
This dividend decision aligns with Union Jack’s current financial health, boasting a yield of 2% at current share price levels. The company has consistently demonstrated its ability to generate sufficient cash flow to support its dividends, underpinned by a series of successful operational undertakings and strategic asset management.
Union Jack has a diverse portfolio that includes significant holdings in both the UK and the USA. In the UK, the company has been progressing well with its Wressle field, which has been a major revenue driver since it came online in 2021. Plans are underway for further development of this field, including targeting the Penistone Flags formation and installing gas export facilities.
Internationally, Union Jack Oil has recently expanded its footprint in the United States. The company has acquired royalty interests in the prolific Permian Basin in Texas and the Williston Basin in North Dakota, as well as farm-ins to assets in Oklahoma. These moves are expected to diversify the company’s operational base and enhance its growth trajectory through new drilling opportunities.
Looking ahead, Union Jack anticipates a series of operational updates which could influence its market position. Key developments to watch include the flow rates from the Andrews 1-17 well in Oklahoma and the planned drilling activities in the same region. Additionally, approvals for further development of the Wressle asset and a new test well on West Newton are on the horizon.
Financial forecasts from Zeus Capital have remained stable, with projections indicating consistent performance in terms of net production and earnings before interest, taxes, depreciation, and amortization (EBITDA). For the upcoming year, the company expects to maintain a solid production level with slight adjustments to its free cash flow calculations to reflect dividends payments.
Union Jack Oil plc’s strategic approach to maintaining a balanced portfolio, focusing on both immediate cash-generating assets and long-term development opportunities, positions it well within a competitive market environment. The company’s clear focus on operational efficiency and strategic asset management is set to drive continued shareholder value in the forthcoming periods.
Union Jack Oil Final Dividend for 2023, Reflecting Strong Cash Flow and Positive Business Outlook
- Written by: Anthony Fox
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Union Jack Oil has confirmed that the Sark well in Central Oklahoma has been spudded, with the company holding a 60% interest. The well is operated by Reach Oil and Gas Inc., and follows the recent success of the producing Moccasin well.
Union Jack Oil Non-Executive Director Craig Howie has acquired 122,000 shares at 5.075 pence each, raising his total holding to 3,377,000 shares, representing 2.21% of the company’s issued share capital.
Union Jack Oil has announced early-stage plans to monetise gas from its West Newton discovery by powering on-site Bitcoin mining operations. A non-binding LOI has been signed with Texas-based 360 Energy to develop a gas-to-crypto solution, aiming to generate near-term revenue while full field development progresses.
Union Jack Oil has scheduled a General Meeting for 26 August 2025 to seek shareholder approval for the issue of warrants linked to its recent fundraising. The meeting will be held at The Bristol Hotel, with full details available on the company’s website.
Union Jack Oil has raised £2 million via a placing and subscription of 40,000,000 new shares at 5p, with one 8p warrant per share subject to shareholder approval. Proceeds will fund a three-well Oklahoma drilling programme costing about US\$3 million. Admission is expected on 29 July 2025, leaving 146,565,896 voting shares.
Union Jack Oil has signed a farm-in agreement with Reach Oil and Gas to acquire a 60% working interest, paying 80%, in the Sark well planned for drilling in early Q3 2025 in Central Oklahoma, USA.
