Union Jack Oil (LSE:UJO) has announced a slight postponement to the spud date for the Crossroads well in southern Oklahoma. The delay follows maintenance requirements identified by operator Reach Oil and Gas Company Inc., with drilling now expected to begin before the end of April 2026, suggesting only limited disruption to the overall schedule.
Union Jack retains a 43% stake in the project and has already covered its share of drilling expenditures using available cash. This confirms the well is fully funded, and the revised timeline is not expected to place pressure on the company’s short-term finances or alter its broader plan to strengthen its onshore presence in the United States.
From a financial perspective, the group continues to benefit from a debt-free balance sheet and consistent profitability since 2022. However, performance has been weighed down by a sharp decline in profitability during 2024, alongside uneven and negative free cash flow trends. Market indicators point to near-term momentum, though conditions appear overbought, and the longer-term trend remains less robust. Valuation metrics are also challenging to assess, given the absence of a meaningful P/E ratio and dividend yield.
More about Union Jack Oil
Union Jack Oil is an AIM-listed oil and gas company engaged in onshore production, development, exploration, and investment across the UK and the United States. Its strategy centers on conventional hydrocarbon projects, with stakes in a range of drilling and producing assets, aiming to build a portfolio of reliable, cash-generating operations within established energy regions.
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