Union Jack Oil (AIM:UJO) shares dropped 15.8% on Tuesday, to 4p, after it reported a £7.03m net loss for the year and non‑recurring impairments to its Biscathorpe, North Kelsey and Sark interests.
Oil and gas revenue fell to £2.49m (2024: £3.93m), and gross profit narrowed to £691,001 (2024: £1.97m) while basic loss per share was 5.68p (2024: 0.61p earnings). The company said the result includes impairments of its Biscathorpe, North Kelsey and Sark interests, which materially contributed to the swing to a loss and are treated as non‑recurring charges.
Union Jack finished the year debt free and has begun a major cost reduction programme expected to cut general and administrative costs by about £500,000 per annum.
Operationally, the group has shifted focus to the USA, where it drilled five wells with partner Reach achieving an 80% success rate, Moccasin 1‑13 is producing about 48 barrels per day gross and UK flagship Wressle averaged 297 bopd gross (Union Jack net 119 bopd) and retains over 2.3m boe 2P gross reserves per the CPR.
"The Board is confident the successful transition of focus to the USA will continue to drive further growth," said David Bramhill, Executive Chairman.
