Union Jack Oil (AIM:UJO) kept hold of a 'BUY' rating over at SP Angel, following Tuesday's financial results, but the broker's 12-month target was cut to 20p a share, from 23p.
At 20p, nevertheless, the pitch is still a bullish one.
In London, on Tuesday, Union Jack shares were trading some 11.5% lower at 4.2p.
It comes as Union Jack, which presumably soon opts for a rebrand, plans to lean much more in the direction of its American assets rather than its onshore UK projects that are stymied in British planning.
David Mirzai, analyst at SP Angel, in his note, pointed to imminent testing of the Crossroads well in Oklahoma as the near‑term value catalyst while UK production underpins revenues.
The note highlights FY25 oil and gas revenue of £2.5m, net cash of almost £1.5m and a £7m loss driven by £5.2m of impairments, adds expected G&A savings of about £0.5m a year and flags Wressle's c.300 bopd gross, Keddington's restart, US Moccasin success and that the Crossroads well (43% WI) logged good shows with four intervals to be tested by operator Reach.
"Positive drilling results could set the tone for a re‑rating from here," the note said, with Crossroads testing scheduled to start in mid‑June as the next material catalyst.
