Union Jack Oil plc (AIM: UJO) has announced the appointment of three independent Non-Executive Directors and an almost 50% reduction in annualised administrative costs, as its newly restructured Board continues efforts to strengthen corporate governance, improve financial discipline and restore shareholder value.
The UK and US-focused energy company has appointed Simon Flatt, Peter Brailey and Stuart Watson to its Board with immediate effect, bringing additional expertise in energy operations, engineering, financial management and corporate oversight.
Simon Flatt has been appointed Senior Independent Director, drawing on extensive experience in operational risk, project management and international upstream energy developments.
Flatt previously spent seven years at ExxonMobil and served as Chief Executive Officer of Afghanistan-based Rahmat Siddiqi Transportation & Logistics Group. His more recent experience includes drilling project mobilisation in Kurdistan and evaluating oil and gas acquisition opportunities in Libya and northern Iraq.
Peter Brailey will chair Union Jack’s Remuneration Committee, bringing more than 40 years of experience in engineering and infrastructure projects.
A Chartered Engineer, Brailey previously worked with Enterprise Oil and Bechtel and was a partner at consulting engineering firm Hoare Lea. He has also provided expert technical evidence in commercial disputes and legal proceedings.
Stuart Watson has been appointed Chairman of the Audit Committee, following a 35-year career in financial services during which he established and sold two financial advisory businesses.
His experience includes financial planning, business development, succession planning and corporate administration.
The appointments follow a major restructuring of Union Jack’s leadership after the previous Board was replaced in August 2026.
The company confirmed that immediate cost-cutting measures have reduced its annualised general and administrative expenditure by almost 50%, compared with the levels reported for the financial year ended 31 December 2025.
The savings have primarily come from lower directors’ remuneration, reduced consultancy costs and the termination of advisory arrangements that the new Board believes were not delivering sufficient shareholder value.
Former directors David Bramhill, Joseph O’Farrell and Dr Zac Phillips were removed from their positions on 24 August 2026 and no longer have any involvement with the company.
Union Jack also confirmed that settlement agreements have been reached with the former executive directors, on terms the Board considers favourable to the company and shareholders.
The restructuring follows a period of corporate uncertainty, including an all-share takeover proposal from Reabold Resources.
Union Jack confirmed that Reabold’s offer has now lapsed under the Takeover Code, allowing the new management team to focus on its own operational and investment strategy.
A central element of that strategy involves reviewing the company’s existing oil and gas interests to determine where capital can generate the strongest commercial returns.
A detailed review of Union Jack’s entire asset portfolio is underway and is expected to conclude during the fourth quarter of 2026.
The Board said future investment decisions would be based on strict commercial criteria, with funding directed only towards projects offering a demonstrable opportunity to increase shareholder value.
Discussions with existing partners are continuing and could result in changes to the company’s asset portfolio, although no specific disposals or acquisitions have been announced.
Union Jack also intends to introduce quarterly corporate updates from January 2027, supplementing its existing financial reporting obligations and providing investors with more regular information on operational progress and strategic decisions.
The company believes improved communication will help strengthen transparency as it implements its revised corporate strategy.
Executive Chairman Craig Howie said the new Board had acted decisively since taking office in late August, prioritising administrative cost reductions, stronger governance and a comprehensive review of the company’s assets.
He emphasised that capital would only be allocated to opportunities with a clear commercial rationale and realistic prospects of delivering positive returns.
Howie also welcomed the three new independent directors, highlighting the importance of external oversight and their collective experience in supporting the company’s next stage of development.
For investors, the near-50% reduction in annualised overheads represents a significant restructuring measure, potentially improving Union Jack’s financial efficiency and allowing more capital to be directed towards operational priorities.
However, the company has not disclosed the absolute annual savings in this announcement, and the impact on future profitability and cash flow will depend on underlying asset performance and any additional restructuring costs.
Attention will now turn to the completion of the portfolio review before the end of 2026 and the first scheduled quarterly corporate update in January 2027, as Union Jack Oil seeks to rebuild investor confidence and establish a more disciplined approach to growth.
