WTI (Mar) $65.42 +$2.21, Brent (Mar) $70.71 +$2.31, Diff -$5.29 +10c.
USNG (Mar) $3.92 +19c, UKNG (Mar)* 94.75p -6.15p, TTF (Mar) €38.85 +€0.585.
*Denotes expiry of February contract.
Oil price
Oil is pretty flat today, a combination of the month end, and the inevitable book levelling takes its toll but also Brent for March expires tonight. The typical lemming like activity of the money managers continues, short crude when they believed that supply was over abundant but as soon as one of the Iran*/Kazakhstan*/Storm Fern* events strikes they run for cover and have been busy covering their ahem, shorts, for a month…
*delete as appropriate…
Both Exxon and Chevron have produced results today, both beat the whisper on earnings and both are upbeat about prospects having produced a positive FCF despite a 15% fall in the oil price last year. Both have performed well, Exxon rather better, up by some 25% but not bad given its all been about the magnificent Seven.
Union Jack Oil
Union Jack has provided a project update in respect of its key projects in the United Kingdom and the United States of America
United Kingdom
Wressle (PEDL180 and 182 – 40% interest)
Union Jack’s flagship project Wressle, located in Lincolnshire, on the western margin of the Humber Basin is one of the most productive conventional oilfields in the UK.
Average production during January 2026 is circa 267 barrels of oil per day (“bopd”) gross. On full production days the range has been between 267 and 339 bopd.
Site upgrades and facility improvements continue to be implemented to improve efficiency, optimise production efficiencies and to eliminate routine flaring.
The Wressle project remains a high value asset in Union Jack’s portfolio with 2P reserves of over 2,300,000 barrels of oil equivalent to be extracted according to ERCE as stated within their Competent Persons Report published in December 2023.
The Joint Venture parties are awaiting regulatory approvals for planning and permit applications that will enable the next phase of field development to take place.
Keddington Oilfield (PEDL005(R) – 55% interest)
The Keddington Oilfield is located along the highly prospective East Barkwith Ridge, an east-west structural high on the southern margin of the Humber Basin.
Following a major upgrade of site facilities and infrastructure during 2025, Keddington was brought back on-line in June 2025 and to date, over 5,000 barrels of oil have been produced and sold.
Current production during January 2026 is approximately 36 bopd gross.
Planning permission is in place to drill a further two wells.
West Newton Development (PEDL183 – 16.665% interest)
West Newton is situated onshore UK, north of the River Humber, encompassing the town of Beverley, East Yorkshire. The licence area is within the western sector of the Southern Zechstein Basin.
The West Newton drilling programmes have yielded substantial hydrocarbon discoveries within the Kirkham Abbey formation and an independent resource assessment by RPC indicates the presence of a contingent resource of 198 billion cubic feet of gas.
The Company`s technical team has further identified targets within the licence area which indicate volumetrically significant prospective gas resources in an untested formation.
The operator, Rathlin Energy (UK) Ltd (“Rathlin”) has an ambitious work programme planned for this project during 2026, subject to receipt of regulatory consents.
United States
Since commencing activities is the USA in late 2023, Union Jack has:
· Acquired material ownership interests in numerous drilling, development and production projects in Oklahoma
· Formed a drilling partnership with Reach Oil and Gas Company Inc. (“Reach”)
· Built a cash generating Mineral Royalty portfolio in the Permian Basin, Bakken Shale and Eagle Ford Shale
The Company’s activities in Oklahoma with its partner Reach remain cash flow positive even at the low oil price scenario that the sector is currently experiencing.
The Board of Union Jack is of the view that Oklahoma remains an excellent area to operate, offering excellent potential and opportunities for the future.
Moccasin 1-13 (45% interest)
The Moccasin 1-13 well (“Moccasin”) was drilled in January 2025 to test a dip and fault closed structure west of the Wilzetta fault.
Moccasin encountered hydrocarbons in three zones, the 1st Wilcox, Bartlesville and Red Fork sands. The 1st Wilcox Sand was perforated and production established in February 2025. To date Moccasin has produced circa 18,000 barrels of good quality oil and is currently producing approximately 50 bopd.
The Red Fork and Bartlesville Sands have good hydrocarbon shows from the geological sample log and the Computed Petrophysical Interpretation indicates hydrocarbon presence in both of these formations. The hydrocarbons are “behind pipe” and remain to be perforated at a later date.
Since completion of the 1st Wilcox Sand, Union Jack has purchased the 3D seismic over the Moccasin prospect area. Preliminary evaluation indicates another potential structure is present and mapping of the seismic is underway.
Crossroads (43% interest)
The Crossroads well, following regulatory delays, is now scheduled to be drilled in Q1 2026.
Crossroads is a structural prospect with an area of 100 acres and 50 feet of vertical closure, mapped by Reach from 3D seismic.
The main objective of the well is for oil in the middle Ordovician age Oil Creek Sand. The James Thompson 1A well, located 1.5 kilometres north-west of Crossroads tested 124 bopd from the Oil Creek formation. Other potential reservoirs exist in the Tulip Creek and McClish formations. In addition, Pennsylvanian Sands remain a viable target.
The mapped closure at Crossroads is the largest undrilled feature in the area and has the potential to yield up to 1,800,000 barrels of oil.
Success case NPV10% is US$11,000,000 based on US$60 per barrel oil price.
Taylor 1-16 (45% interest)
The Cromwell formation was perforated and returned oil which has been sold to market.
The Cromwell formation is scheduled to be treated with a nitrogen foam treatment to enhance production in Q1.
A nitrogen foam treatment is a stimulation technique used in sandstone reservoirs where liquid nitrogen is combined with a small volume of water and surfactant to create a stable foam that carries proppant into induced fractures.
This process is expected to improve clean up and production.
Andrews Field (45% interest)
The Andrews field comprising the Andrews 1-17 and 2-17 wells is producing in excess of 100 thousand cubic feet of gas per day and a small amount of oil which is being sold to market.
Since being brought into production the Andrews field has produced over 100 million cubic feet of gas and in excess of 10,000 barrels of oil.
David Bramhill, Executive Chairman of Union Jack, commented:
“Union Jack holds numerous valuable assets on both sides of the Atlantic.
“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.
“In the USA, Oklahoma also holds serious upside potential for the Company and we look forward with positive anticipation to the results of the downhole well treatment at Taylor 1-16 and the drilling of the high-impact Crossroads well.
“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.”
Union Jack has a promising portfolio of interests which can be explored and developed in the coming months. At Wressle, ‘site upgrades and facility improvements continue to be implemented to improve efficiency, optimise production efficiencies and to eliminate routine flaring’.
With its 2P reserves of over 2.3m barrels of oil equivalent according to the ERCE CPR it remains. a huge prize and UJO and its partners are ‘awaiting regulatory approvals for planning and permit applications that will enable the next phase of field development to take place.
At West Newton where there is an independent resource assessment of a contingent resource of 198 BCF of gas, as given by RPC, it should not be forgotten has already yielded ‘substantial hydrocarbon discoveries within the Kirkham Abbey formation’.
In addition their technical team has ‘further identified targets within the licence area which indicate volumetrically significant prospective gas resources in an untested formation’. Accordingly the operator, Rathlin has an ambitious work programme planned for this project during 2026, subject to receipt of regulatory consents.
In his comments, Chairman David Bramhill states that he has ‘no doubt’ that the current attitude towards fossil fuels will ‘change for the better’ in the UK and that 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’.
I’m sure that he is right and that it is only a matter of time before common sense prevails and that a sensible middle route can be taken between the crackpot net zero crusade currently orchestrated by the UK Government and a more reasonable low carbon development of our domestic hydrocarbon riches.
In the USA the company are planning a new high-impact well on the Crossroads project in this quarter whilst at Taylor 1-16 they are planning nitrogen foam treatment in the Cromwell formation which is intended to both clean-up the well and increase production.
With the comment that in the light of the current oil price environment there is a cost reduction programme expected to improve net cash flow, along with substantial drilling opportunities upcoming, this year looks to be very promising for Union Jack both in the UK and the USA.
Europa Oil & Gas
Europa has announced that it has received confirmation from the Irish Government’s Department of Climate, Energy and the Environment that, whilst the FEL 4/19 licence Phase 1 extension application is under consideration, it remains live and in Phase 1 until the application process is concluded.
Will Holland, Chief Executive Officer of Europa, said:
“FEL 4/19 contains the large 1.5 TCF, low risk Inishkea West gas prospect and is a strategic asset that can potentially provide a reliable source of low emission energy for Ireland and play a key role in the transition to renewable green power. Given the proximity to existing infrastructure, a discovery at Inishkea West could be brought online quickly and would reduce Ireland’s reliance on imported gas, which carries significantly higher emissions than gas from Inishkea West would.”
A tricky one this, it goes without saying that the sensible, realistic and consumer friendly way forward for both the Irish Government and EOG and its shareholders would be to realise that the best interests are served by at least extending this licence.
However given that the stated policy of the Irish Government is to take a hard line on net zero makes it unlikely to change that stance right now, indeed as I have heard around the tracks it may only be when the lights go out in Irish homes will the Government have its own lightbulb moment.
In the meantime I would assume that the bounteous riches in the Inishkea West gas prospect will remain just where they are now, until then Europa must be patient and keep hoping that the licence continues to be ‘under consideration’ and remains live and in Phase 1. Whilst not a lost cause it is probably still in the long grass for EOG but certainly not forgotten…
And finally…
The 1st T20 in the three match series between England and Sri Lanka was scheduled to start today at 13:30 but has been delayed due to rain. The next match is at 13:30 on Sunday.
In the Prem tomorrow the Seagulls host the Toffees, the Gooners travel to Elland Road, Wolves entertain the Cherries, there is a London derby as the Hammers visit Stamford Bridge whilst Liverpool host the Magpies.
On Sunday Villa entertain the Bees, the Cottagers go to the Theatre of Dreams, Forest host the Eagles and the Noisy Neighbours are at White Hart Lane.
Rugby is the Premiership Cup but all very quiet ahead of the 6 Nations which starts next Thursday.
And racing is pretty paltry, a poor card at Sandown maybe better at Musselburgh…
Disclaimer & Declaration of Interest
The information, investment views and recommendations in this article are provided for general information purposes only. Nothing in this article should be construed as a solicitation to buy or sell any financial product relating to any companies under discussion or to engage in or refrain from doing so or engaging in any other transaction. Any opinions or comments are made to the best of the knowledge and belief of the writer but no responsibility is accepted for actions based on such opinions or comments. The writer may or may not hold investments in the companies under discussion.
