2023 Annual Report

2023 was, in general, a tough time for small oilers with many non-producers raising funds to keep the lights on whilst struggling to develop some form of positive outlook for themselves. When you view the progress of Union Jack Oil, it far exceeds any expectations that may have been perceived for companies in the UK onshore oil sector.

Regardless of a crippling tax levy and lower oil prices, the management managed to increase assets, ensured revenues continued and negotiated what seems to he an extremely successful joint venture agreement in the United States with Reach Oil.

There were numerous disappointments in 2023 with what would appear to be caused by operator lethargy, planning oppositions and what resulted in a three month production cut due to the installation and upgrades to equipment at Wressle.

What shareholders and potential investors need to be aware of is that until this latest venture with Reach, in terms of revenue, Union Jack was in reality a one trick pony. I say this as without Wressle, Keddington would hardly keep the wolves from the door and the company would have been raising funds for the US venture and we would be seeing another year of dilution and disappointment.

As it is, with the excellent financial management by the board, Union Jack has yet again achieved profitability. No fund raising, no debt and as David Bramhill says, a ‘bright future’ lies ahead for shareholders. It is not difficult to see why he states this. No other UK onshore oiler offers this diversity and potential.

I note on the LSE, Union Jack’s very own Doberman is slating the board for what she describes as a ‘bonus’. Does she not understand that the take home pay for someone on £300k after deductions equates to £170,000? Does she realise someone on £120k would take home £75,400?

With no health cover, with no pension and no company car to mention just a few of the normal benefits that directors could expect, a decade or more has passed with these guys receiving just their salaries and none of what should have been afforded them. I note also that this is a one off payment and the previous salaries will be restored moving forward.

Union Jack Oil in my opinion will re-rate substantially as the US assets begin to be realised and investors over there begin to take an interest. With so few shares in issue and investors having to buy on the market through the LSE, via the OTCQB, this will I feel confident, become a very tight position in availability.

2023 was a great success for the company and whilst shareholders haven’t seen a marked increase in value, for all the advances and positive RNS, it is coming.

I appreciate it’s easy for me to say be patient, I appreciate many long term shareholders have exercised more than their fair share of that, but the company is transforming in a way never seen before and it will win out, of that I am sure.