A flash blog today, back to the smoke…Usual rules apply…
Union Jack Oil
Union Jack has announced that, further to the Company’s announcement on 15 May 2026, the Company is providing an update on the Crossroads well, Garvin County, Oklahoma USA. Union Jack holds a 43% interest in this well.
The Crossroads well encountered good hydrocarbon shows at several levels from the Hoxbar down to the Basal McLish intervals. Four intervals with production potential were perforated and tested.
Following testing the well has been deemed non-commercial and will be plugged and abandoned in due course.
Fortunately this fairly rare well result happens only occasionally in this location and the UJO campaign in the USA has so far been highly successful and I’m sure will continue to be so. The policy, designed to de-risk the portfolio has been a sensible move particularly given the domestic net zero policy attack on the UK domestic resources companies and desecration of the once world leading industries.
Gulf Keystone Petroleum
Ahead of today’s 2026 Annual General Meeting, Gulf Keystone, a leading independent operator and producer in the Kurdistan Region of Iraq, provides an operational and corporate update.
Jon Harris, Gulf Keystone’s Chief Executive Officer, said:
“We are looking forward to welcoming GKP shareholders to our 2026 AGM today. Despite the recent shut-in of the Shaikan Field, we have responded swiftly and decisively to preserve our financial strength while maintaining our readiness to quickly restart production at full capacity. We remain focused on securing the conditions required for a safe resumption of production following the recent encouraging developments in the regional security environment. We also continue to progress towards sustainable exports sales at international prices.”
With costs down during the conflict and a cautious amount of optimism in terms of restarting production, GKP is rightly not counting its chickens for a rapid restart of revenues to full capacity. Watch this space but if the ceasefire works and the peace is of a decent duration then GKP will be set to return to profitable growth.
Operational & Financial
- Strong safety track record, with Zero Lost Time Incidents for over three years
- The Shaikan Field remains offline following the precautionary shut-in on 28 February 2026 due to the security environment
- The Company has moved swiftly to reduce expenditures, reducing monthly cash burn by almost 50%, while maintaining the ability to quickly restart production at full capacity
- Almost all capital projects have been slowed or suspended, with only safety critical or highly strategic projects, such as the installation of water handling at PF-2, proceeding
- Operating costs are minimal due to the production shut-in while the Company has also taken action to reduce staff costs and other G&A expenses
- Should the security issues persist, the Company has the flexibility to reduce expenditures further
- $12.5 million semi-annual dividend paid to shareholders in April 2026
- The Company’s balance sheet remains robust, with cash of $66 million as at 18 June 2026
- Recent reductions to cash offset by ongoing recovery of receivable for production up to 28 February 2026; additional payment expected following recent lifting in June 2026 for outstanding balance
Outlook
- The Company remains ready to restart production and exports immediately once safe to do so
- The recent developments in the regional security environment, including the signing of the framework agreement between the U.S. and Iran, have been encouraging
- The Company is currently working with the Kurdistan Regional Government, Federal Government of Iraq and other stakeholders to secure the conditions required to safely restart production and expects to provide an update once volumes have ramped up and stabilised
- Continued progress towards achieving sustainable exports sales at international prices, with constructive discussions ongoing to extend the current exports agreements
- The Company will look to reinstate 2026 annual guidance once production has resumed and the overall impact of the shut-in is known
- The Company continues to discuss a revised Shaikan Field Development Plan with Kurdistan’s Ministry of Natural Resources which it intends to execute with a return to production and a reconciliation to full PSC entitlement at international prices
Sunda Energy
Sunda has announced that its wholly owned subsidiary SundaGas Banda Unipessoal, Lda. yesterday received from Timor-Leste upstream regulator Autoridade Nacional do Petróleo a letter of notice of intention to terminate the Production Sharing Contract TL-SO-19-16.
SundaGas operates the PSC in partnership with its government-owned joint venture partner TIMOR
GAP Chuditch Unipessoal, Lda. (“TIMOR GAP”). The PSC contains the Chuditch gas field where
SundaGas has been preparing to drill the Chuditch-2 appraisal well.
The Notice states that SundaGas is in breach of the PSC in that it has failed to fulfil its minimum
exploration work requirements for contract year 3 of the PSC, namely, to drill Chuditch-2 by 18 June
2026.
Pursuant to the Notice and the PSC, SundaGas is afforded the opportunity to submit written
representations to ANP concerning the Breach within 120 days of the Notice, that is 16 October 2026,
before ANP makes a final decision on termination at its sole discretion. The Notice also sets out that
ANP may consider granting an extension for the period for the fulfilment of the minimum exploration
work requirements for contract year 3 of the PSC, provided SundaGas provides evidence of a binding
signed contract for a rig to drill Chuditch-2 in calendar year 2027.
The Board of Directors of Sunda disputes the basis of, and background to, the Notice and the Company
is consulting with its regulatory and legal advisers with respect to the matters therein. SundaGas has
also requested an urgent meeting with ANP for clarifications regarding the contents of the Notice. The
Company reserves its rights with respect to these matters.
Further announcements will be made at the appropriate time by the Company
This is not good news, on the plus side Sunda may eventually get to keep the PSC but to be frank it may end up being yet another round of delay and procrastination from the Timor-Leste authorities. With its excellent diversification in both the Philippines and New Zealand the company has rightly moved to life after Chuditch.
More later…
And finally…
The second test at The Oval was yet another shocker for England’s injury and discipline wracked team, after poor bowling and a howler of a dropped catch by Duckett NewZealand scored 391 and then with the bat England gave away wickets galore and the remaining senior batters should have known better. 222 -6 is no platform and this game could end soon, depending on how cautious New Zealand are with their inevitable declaration…
In the World Cup Scotland are back on duty and play Morocco at 2300 tonight, Morocco are no Haiti so now we will find out how good this side really is, a point would be great and secure a spot in the next round.
I forgot the mention a golf major yesterday, this massive week of sport has hit me hard… The US Open started yesterday at the Shinnecock Hills Golf Club and the start was delayed by poor weather so didn’t complete as the players went off in darkness the leader was Wyndham Clark 6 under after 16.
Royal Ascot continues, as does tennis at Queens Club and the weekend is full of excitement…
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.
