Union Jack Oil Identifies Multiple Prospective Intervals at Oklahoma Crossroads Well (UJO)

Union Jack Oil (LSE:UJO) reported operational progress at the Crossroads Well in Garvin County, Oklahoma, where the company holds a 43% working interest in the onshore hydrocarbon project.

The well was drilled on schedule and within budget to a target depth of 4,600 feet. Electric logging data identified several prospective zones extending from the Hoxbar formation down to the Basal McLish intervals.

Four Sandstone Zones Selected for Testing

Following petrophysical analysis, management confirmed that four sandstone intervals showing production potential — the Middle McLish, Basal McLish, Cisco, and Hoxbar formations — have been selected for testing. Casing operations and cementing work are expected to take place ahead of evaluation activities scheduled for mid-June.

The company highlighted the project’s exploration upside, noting that nearby down-dip wells have already produced hydrocarbons. Union Jack said successful flow testing at Crossroads could strengthen its growing U.S. production portfolio.

Financial and Market Outlook

Union Jack Oil continues to benefit from a strong balance sheet with no debt and has maintained profitability since 2022. However, the company’s outlook has been weighed down by a sharp decline in profitability during 2024 alongside volatile and negative free cash flow trends.

Technical indicators currently point to stronger short-term momentum, although the stock also appears overbought while remaining weaker over a longer-term timeframe. Valuation metrics remain difficult to assess because of the company’s negative price-to-earnings ratio and lack of dividend yield data.

More About Union Jack Oil

Union Jack Oil is an AIM-listed oil and gas company focused on onshore hydrocarbon production, development, and exploration activities across the UK and the United States.

The company also invests in conventional oil and gas opportunities, particularly sandstone-based plays located in established basins, and has been steadily increasing its exposure to U.S. onshore assets, including projects in Oklahoma.