Union Jack Oil plc (LSE:UJO) has appointed three independent Non-Executive Directors and announced an almost 50% reduction in annualised general and administrative costs as part of a restructuring programme introduced by its new Board in August 2026.
The UK-focused energy company confirmed the immediate appointments of Simon Flatt, Peter Brailey and Stuart Watson, strengthening its corporate governance arrangements and introducing additional operational, engineering and financial expertise.
The appointments follow a series of cost-cutting measures implemented since the Board’s restructuring in late August, including reductions in directors’ remuneration, consultancy expenditure and external advisory arrangements.
Union Jack also confirmed that a comprehensive review of its asset portfolio remains on schedule for completion during the fourth quarter of 2026, with future investment decisions to be guided by their potential to generate shareholder value.
The company intends to introduce quarterly corporate updates from January 2027 to improve transparency and communication with investors.
Three Independent Non-Executive Directors Join Union Jack Board
Union Jack Oil has appointed Simon Flatt, Peter Brailey and Stuart Watson as independent Non-Executive Directors with immediate effect.
The company said the appointments fulfil a commitment made by its new Board to strengthen corporate governance and introduce greater independent oversight.
Each director brings experience in areas relevant to Union Jack’s operations and corporate strategy, including upstream energy project management, engineering, financial services and business governance.
The appointments also establish new leadership for the company’s senior independent director, remuneration committee and audit committee positions.
Simon Flatt Appointed Senior Independent Director
Simon Flatt has joined Union Jack’s Board as Senior Independent Director.
He brings experience in operational risk management and project delivery across international upstream energy operations, including projects in challenging operating environments.
Flatt previously spent seven years at ExxonMobil and has held senior executive positions in the energy and logistics sectors.
He also served as Chief Executive Officer of Rahmat Siddiqi Transportation & Logistics Group, an Afghanistan-based transportation and logistics business.
More recently, Flatt participated in the mobilisation team for a greenfield drilling project in Kurdistan with WesternZagros.
He is currently involved in evaluating brownfield acquisition and development opportunities in Libya and Northern Iraq.
Union Jack expects his operational and project management experience to contribute to Board oversight as the company reviews its existing assets and potential future investments.
Peter Brailey Takes Responsibility for Remuneration Committee
Peter Brailey has been appointed as an independent Non-Executive Director and Chairman of Union Jack’s Remuneration Committee.
He has more than 40 years of experience as a consulting engineer working on energy and infrastructure projects in the UK and internationally.
Before establishing his own consulting practice, Brailey was a partner at Hoare Lea, a consulting engineering firm.
His earlier career included positions with Enterprise Oil and Bechtel.
Brailey has also provided expert witness evidence and technical engineering opinions in commercial disputes, planning matters and judicial proceedings.
He is a Chartered Engineer, a member of the Energy Institute and the Institute of Acoustics, and holds a postgraduate qualification in expert witness evidence.
His appointment comes as Union Jack continues implementing changes to executive remuneration and corporate expenditure.
Stuart Watson Named Audit Committee Chairman
Stuart Watson has joined the Board as an independent Non-Executive Director and Chairman of the Audit Committee.
Watson has 35 years of experience in financial services, during which he established and subsequently sold two financial advisory businesses.
His professional background includes independent financial advice to companies, business owners and private clients.
Areas of expertise include wealth management, tax-efficient value extraction, succession planning and business development.
Watson also serves as company secretary of a privately held commercial property business, where he participates in operational management and Board processes.
He is a member of the Chartered Insurance Institute.
The appointment is intended to strengthen financial oversight and corporate governance as Union Jack implements its restructuring and reviews capital allocation priorities.
Annualised Administrative Costs Reduced by Almost 50%
Union Jack Oil reported that its initial restructuring measures have reduced annualised general and administrative expenditure by almost 50% compared with the levels reported for the financial year ended 31 December 2025.
The reduction follows the new Board’s commitment in August to address the company’s central cost base as a matter of urgency.
Union Jack said the savings had been achieved primarily through lower directors’ remuneration, a reduction in consultancy headcount and the termination of certain external advisory relationships.
The Board concluded that some of the previous advisory arrangements had not delivered sufficient value for shareholders.
The company described the reduction in central overheads as a significant early outcome of its corporate restructuring programme.
Although Union Jack has confirmed the approximate percentage reduction in annualised expenditure, it has not disclosed the corresponding monetary savings in this announcement.
The lower cost base is intended to improve financial discipline and allow a greater proportion of available resources to be directed towards commercially attractive opportunities.
Settlements Agreed With Former Executive Directors
Union Jack also provided an update on the departure of its former directors.
David Bramhill, Joseph O’Farrell and Dr Zac Phillips were removed from the Board on 24 August 2026.
The company confirmed that none of the three individuals retains any involvement with Union Jack.
Settlements have subsequently been agreed with the former executive directors.
According to the new Board, the agreements were reached on terms considered favourable to the company and its shareholders.
Union Jack did not disclose the financial details of the settlements.
The conclusion of these arrangements forms part of the wider changes introduced following the Board’s restructuring in August.
Reabold Resources Takeover Offer Has Lapsed
Union Jack confirmed that Reabold Resources’ proposed all-share takeover offer has now lapsed under the UK Takeover Code.
With the proposed transaction no longer proceeding, the company’s new Board is continuing to implement its independent corporate strategy.
The strategy focuses on reducing costs, strengthening governance, improving communication with shareholders and reviewing the commercial merits of the existing asset portfolio.
Union Jack said its Board remains committed to restoring and growing shareholder value through disciplined investment decisions.
The company has not announced any replacement transaction or alternative corporate proposal in its latest update.
Asset Portfolio Review Expected to Conclude in Fourth Quarter
Union Jack is undertaking a detailed review of its entire asset portfolio to assess the commercial attractiveness of existing interests and potential future projects.
The review is expected to be completed during the fourth quarter of 2026.
The Board has established a strategy of allocating capital only to projects that can demonstrate a credible potential to increase shareholder value.
This approach is intended to ensure that future expenditure is supported by a clear commercial rationale and realistic prospects of success.
Union Jack confirmed that discussions with partners regarding certain assets are ongoing.
These discussions could result in changes to the composition of the company’s portfolio.
However, no specific disposals, acquisitions or changes to ownership interests have been announced.
The company said it would provide further information if developments warrant a market announcement.
The outcome of the portfolio review is expected to influence Union Jack’s investment priorities and future operational strategy.
Quarterly Corporate Updates to Begin in January 2027
Union Jack has announced plans to introduce a regular quarterly corporate reporting programme.
The first update is scheduled for January 2027, with subsequent announcements intended to provide shareholders with greater visibility into corporate and operational developments.
The company said the updates would supplement its existing financial reporting obligations rather than replace them.
The initiative forms part of the new Board’s commitment to improving investor communication following the restructuring.
The updates are expected to cover progress against corporate objectives and developments affecting the company’s operations and asset portfolio.
Union Jack believes more frequent communication will support greater transparency as it works to implement its revised strategy.
Executive Chairman Outlines Corporate Recovery Priorities
Union Jack Oil Executive Chairman Craig Howie said the new Board had moved quickly to address the company’s cost structure, governance arrangements and investment priorities.
“Since taking office in late August, Union Jack’s new Board has responded vigorously to the inherited challenges, focusing on administrative costs, corporate governance and the asset portfolio. We will be disciplined in where we allocate capital and only invest in projects with a clear commercial rationale and realistic prospect of success. We look forward to the completion of our ongoing review of current and potential new projects and, as material shareholders ourselves, are committed to improving investor communication, now that the most urgent corporate recovery steps have been taken. Union Jack warmly welcomes its incoming Non-Executive Directors, who we fully expect to provide critical but extremely valuable oversight and guidance.”
The comments underline the Board’s intention to maintain financial discipline while evaluating opportunities for future growth.
Union Jack Oil Outlook
Union Jack Oil enters the final quarter of 2026 with a substantially reduced annualised cost base and three newly appointed independent Non-Executive Directors.
The company has achieved an almost 50% reduction in annualised general and administrative expenditure compared with its 2025 financial year, following changes to remuneration, consultancy arrangements and external advisory relationships.
The immediate governance changes have also established independent leadership for the Board’s remuneration and audit committees.
Union Jack’s next major corporate milestone is the completion of its asset portfolio review, which remains scheduled for the fourth quarter.
The review will assess existing investments and potential new projects against the Board’s requirement that capital expenditure should offer demonstrable prospects of increasing shareholder value.
Discussions with asset partners remain ongoing, although no portfolio transactions have been confirmed.
The company also intends to begin issuing quarterly corporate updates in January 2027 as part of its commitment to greater investor transparency.
With the Reabold Resources takeover proposal no longer active, Union Jack’s near-term focus remains on completing its restructuring, assessing its asset portfolio and establishing a disciplined approach to future investment.
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