Union Jack Oil Shares Slide After Oklahoma Crossroads Well Plugged and Abandoned

Shares in Union Jack Oil (AIM: UJO) fell sharply on Friday, dropping 8.5% to 3.75p, after the AIM-listed explorer announced that its Crossroads well in Garvin County, Oklahoma, has been deemed non-commercial and will be plugged and abandoned.

The stock opened at 3.09p, hitting an intraday low of 3.00p before recovering slightly, with trading volumes of 865,888 shares — well above recent averages — reflecting the scale of investor disappointment. The previous close stood at 4.10p.

In a regulatory announcement, Union Jack revealed that four intervals between the Hoxbar and Basal McLish formations were perforated and tested following encouraging hydrocarbon shows encountered at multiple levels during drilling. Despite these initially promising indications, none of the intervals tested at commercially viable flow rates, leaving the well unable to justify further development.

WELCOME BONUS - Free Share Bundle When You Invest £50! Get up to £500 cashback for investing with IG.

Invest in 15,000+ shares and ETFs. Open an account now, invest at least £50, and you’ll get a free share bundle worth between £40 and £200. T&Cs apply.

5.0

Open Account Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 68% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money.

The company, which holds a 43% working interest in Crossroads, had first announced the drilling campaign on 15 May 2026 when the stock was trading at around 5p. Friday’s sell-off means shares have now lost approximately 25% of their value since the programme was first flagged to the market.

Union Jack has been building its US footprint through a partnership with Oklahoma-based operator Reach Oil & Gas, following earlier successes at the Moccasin and Andrews wells. The Crossroads disappointment will weigh on investor confidence in the company’s US growth strategy, though its UK producing assets — including the Wressle oilfield in Lincolnshire and the recently reactivated Keddington site — continue to provide a base level of production and cash flow.

The company remains debt-free, and management is expected to update the market on its forward drilling plans in due course.