Union Jack Oil (LSE:UJO) has reported that the Crossroads well in Garvin County, Oklahoma, where it holds a 43% working interest, has been deemed non-commercial following testing operations. The update follows the completion of evaluation work on the well, which had encountered hydrocarbon shows across multiple geological formations.
During drilling and testing activities, hydrocarbons were identified in several intervals ranging from the Hoxbar formation to the Basal McLish section. Four zones considered to have production potential were perforated and subjected to testing in an effort to assess their commercial viability.
Despite these encouraging indications, subsequent analysis and testing concluded that the well does not support commercial development. As a result, Union Jack and its partners intend to plug and abandon the well in due course. The outcome represents a disappointment for the company’s US onshore exploration programme and removes the prospect of near-term production, revenue or cash flow from the Crossroads asset.
The company’s outlook remains weighed down by weak financial performance, including a significant loss reported in 2025, negative operating cash flow and continued free cash flow deficits. Technical indicators also remain under pressure, with the shares trading below key short-term moving averages and momentum measures signalling weakness. A debt-free balance sheet provides some support, although valuation metrics remain challenged by negative earnings and the absence of dividend guidance.
More About Union Jack Oil plc
Union Jack Oil plc is a UK-based onshore oil and gas company with interests in production, development and exploration assets across both the United Kingdom and the United States. Listed on AIM under the ticker UJO, the company focuses primarily on conventional hydrocarbon opportunities and seeks to build value through a combination of exploration success, production growth and strategic investments.
Its portfolio includes interests in a range of oil and gas projects, with exposure to both established producing assets and higher-risk exploration prospects. The company continues to evaluate opportunities that can deliver long-term growth while maintaining a disciplined approach to capital allocation and operational development.
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