Zacks Small-Cap Research has raised its price target on Union Jack Oil to $0.34 per share from $0.31, pointing to the company’s continued operational execution and a more favorable oil price environment, while urging U.S. investors to take a closer look at the UK small-cap producer.
Analyst Brad Sorensen said the company “has increasingly positioned itself as a differentiated small-cap onshore oil and gas producer with exposure to both the United Kingdom and the United States,” adding that the dual-market strategy provides geographic diversification while maintaining “a disciplined capital structure.”
The most immediate catalyst is the recent spudding of the Crossroads well in Oklahoma on May 5, with drilling expected to take approximately 10 days.
WELCOME BONUS - Free Share Bundle When You Invest £50!
Open a UK Investment Account: Shares, ISAs, Managed Portfolio
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.
IG
View Offers
Empfohlener Broker
Multi Asset Platform
Union Jack holds a 43% working interest in the project, with its share of drilling costs funded entirely from existing cash. Thi is a point Sorensen highlighted as indicative of the company’s conservative financial approach.
“Because the company already funded its participation from cash on hand, the project avoids the near-term burden of additional financing costs or shareholder dilution,” he wrote.
Sorensen believes a successful well “could have an outsized impact on both revenues and valuation,” potentially opening additional drilling opportunities in the surrounding acreage.
He added that the timing is advantageous given the recent recovery in oil prices, with Zacks forecasting crude trading above $80 for the balance of 2026 and above $70 well into 2027.
“We still believe this is a conservative estimate and that US investors should pay attention to what’s going on with UJOGF,” Sorensen wrote.
Searching for the Perfect Broker?
Discover our top-recommended brokers for trading or investing in financial markets. Dive in and test their capabilities with complimentary demo accounts today!
- IG Top-tier regulation – Read our Review
- eToro Wide range of instruments available to trade – Read our Review
YOUR CAPITAL IS AT RISK. 76% OF RETAIL CFD ACCOUNTS LOSE MONEY
