Union Jack Oil (LSE:UJO) announced that drilling at the Crossroads well in southern Oklahoma is expected to begin around 16 April 2026. The company holds a 43% working interest in the project and has already paid its share of the drilling costs. The well will target a large 100-acre four-way dip closed structure within the productive Oil Creek Sand formation. According to operator estimates, the structure could contain approximately 1.67 million barrels of recoverable oil on a gross basis across several zones, highlighting the potential for meaningful production growth if the drilling campaign proves successful.
From a financial perspective, the company benefits from a strong balance sheet with no debt and has maintained profitability since 2022. However, its outlook is tempered by a sharp decline in profitability during 2024 and ongoing volatility in free cash flow. Technical indicators suggest short-term momentum in the share price, although overbought conditions and a weaker longer-term trend introduce caution. Valuation metrics remain difficult to justify due to a negative price-to-earnings ratio and the absence of dividend support.
More about Union Jack Oil
Union Jack Oil is an onshore oil and gas company focused on production, development, exploration and investment opportunities in the UK and the United States. Listed on AIM under the ticker UJO, the company participates in hydrocarbon projects through meaningful working interests in established basins, targeting conventional resource opportunities with the potential for significant upside.
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