WTI (June) $101.17 +15c, Brent (July) $105.72 +9c, Diff -$4.55 -6c
USNG (June) $2.89 +3c, UKNG (June) 118.95p +3.95p, TTF (June) €48.205 +€1.705

Oil price

Oil is up sharply this morning as President Trump returns to the USA after a ‘successful’ series of meetings with China’s President Xi.

But on Air Force One Trump told reporters that he was ‘losing patience with Tehran’ which has led people to think that more aggression may be on the way.

Union Jack Oil

Union Jack has announced a positive update on the Crossroads Well, located in Garvin County, Oklahoma USA. Union Jack holds a 43% interest in this well.

• Crossroads drilled on budget to Target Depth of 4,600 feet
• Electric logs have been acquired and several zones of interest and test intervals have been identified
• Production casing will be run and cemented
• The technical team at Reach Oil and Gas Company Inc., the Operator, has informed Union Jack that the evaluation and testing will begin in mid-June

The Crossroads well encountered good hydrocarbon shows at several levels from the Hoxbar down to the Basal McLish intervals.

Based on a petrophysical evaluation of the downhole logs, four intervals with production potential will be tested. These intervals are the Middle McLish, Basal McLish, Cisco and Hoxbar Sandstones.

David Bramhill, Executive Chairman of Union Jack, commented: 
“We look forward to the evaluation and test results from Crossroads which has excellent upside potential. Nearby wells that are down-dip from the Crossroads location have produced hydrocarbons.

“We look forward to reporting on evaluation and test results from Crossroads in due course.”

This looks to be, on initial indications, to be a potentially good result with logs acquired, several zones of interest and test intervals identified with ‘good hydrocarbon shows’. Looking at the logs, operator Reach will be testing four intervals which have production potential in the Middle McLish, Basal McLish, Cisco and Hoxbar Sandstones.

Clearly this is early days, with testing yet to evaluate flow rates and so on but as Chairman David Bramhill states above there is ‘excellent potential’ and that nearby wells that are down-dip have produced hydrocarbons. 

With so much potential both here and in its domestic portfolio this year I remain confident that UJO remains very cheap and my target price of 30p is intact and Bucket List status confirmed.

Sintana Energy

Sintana has announced that it has filed its interim financial statements for the three months ended 31 March 2026 and the accompanying Management’s Discussion and Analysis.

Q1 2026 Operational and Financial Highlights

• Completion of the all-share acquisition of Challenger Energy Group Plc and admission to trading on AIM (both effective December 2025), with integration progressing smoothly during Q1 2026.
• Galp Energia announced a 57% upgrade to 3C contingent resources at the Mopane discovery (PEL 83, offshore Namibia), from 875 mmboe to 1.38 billion boe (gross); TotalEnergies confirmed an FID target of 2028 and first oil in 2032.
• Letter of Intent signed securing exclusivity over a potential indirect interest in PEL 37, Walvis Basin, offshore Namibia; definitive documentation expected in Q2 2026 and completion in H2 2026.
• 3D seismic acquisition commenced over AREA OFF-1, offshore Uruguay, with circa 1,600 km² acquired in the first season and fast-track results expected in Q4 2026.
• Settlement reached with ExxonMobil resolving the VMM-37 arbitration for total cash payments of $9 million ($3 million received, $6 million expected before year-end 2026); net loss reduced to $1.1 million (Q1 2025: $2.3 million); cash of $8.2 million at period end.
• Net loss for Q1 2026 of $1.1 million, a reduction from $2.3 million in the comparative period in 2025, primarily reflecting the receipt of $2.3 million of net proceeds from the VMM-37 settlement, partially offset by higher general and administrative expenses.
• As at 31 March 2026, the Company had total assets of $60.5 million (2025: $62.1 million), including cash of $8.2 million (2025: $10.3 million).

Nothing new here, historic quarterly results which now the Challenger acquisition has completed and Sintana is TSX listed as well as the Aim quote it is a mandatory declaration. With the ’25 finals only two weeks ago there is nothing to add today.

Sintana remains a favourite in the sector, it has exposure in some of the most exciting basins in the world, has huge potential and I expect plenty of good newsflow in the coming months. My target price of 75p remains as does its position in the Bucket List.

Prospex Energy

Prospex has provided the following Q1 overview and unaudited quarterly cash-flow updated for the Prospex group of companies, including group cash balances under the Company’s direct control, net results of financing activities, additions to investments and receipts from gas sales for the first quarter of 2026.

Q1 2026 Overview

• £912,000 (Q4 2025: £769,000) of gas sales revenue from Selva Malvezzi. Although the Group benefited from higher European gas prices in March, sales proceeds are received in the following month, so this will be reflected in Q2 receipts.
• The Group closed Q1 with £907,000 (Q4 2025: £42,000) in cash, providing funding for near-term requirements following the oversubscribed Convertible Loan Note (“CLN”) issuance during the quarter.
• Appointment of new CEO, to position the Group for growth, liquidity and asset monetisation.
• Completed £2 million CLN fundraise, 25% above the original target of £1.6 million.
• Restart of production at El Romeral gas power plant in Andalucia, Spain, following the delivery and installation of a rental transformer.
• Advanced expansion into Poland with the award of the San and Dunajec onshore licences.

Prospex Energy Group – Unaudited

Notes

Tom Reynolds, Prospex’s CEO, commented:
“I am pleased to provide shareholders with an overview of Q1 2026 activities, including unaudited group cash-flow for the period, as part of the Company’s ongoing commitment to transparency. Q1 2026 was a period of transition for the Company following my appointment as CEO, providing an opportunity to reassess priorities and re-evaluate our investment portfolio to ensure the Group is positioned for long-term growth. 

“During the quarter, we successfully raised approximately £2 million through the CLN financing, exceeding our initial target by 25%.  This enabled us to fund our share of investments across the portfolio, including the seismic processing programme at the Company’s Selva Malvezzi licence in Italy, at a time of continued strength in European gas markets.

“As we enter the second quarter of 2026, the Company has cash on hand to fund its new licences in Poland and to progress early assessment of prospectivity on that acreage. Strong revenues from gas sales in Italy, driven by elevated European gas prices, are expected to add to that cash balance. I expect Q2 2026 to be a period of consolidation with a focus on planning in support of future investment in the Company’s key assets as well as corporate development activity.

“As previously shared with shareholders, activity across all assets is expected to converge around the end of 2026, with capex required in 2027. Over the remainder of 2026, the Company will continue to evaluate all available funding options to support its development plans whilst limiting shareholder dilution where possible.“

How Prospex has changed in just a few months, indeed CEO Tom Reynolds correctly describes it as being a period of transition ‘providing an opportunity to reassess priorities and re-evaluate our investment portfolio to ensure the Group is positioned for long-term growth’.

The announcement certainly ticks a few important boxes which have been achieved in the last few months, not least revenue of £912/- and strong European gas prices will  contribute to higher realisations in Q2.

This takes the cash balance to £907k/- following the oversubscribed CLN raise, which is  a key sign of renewed investor confidence and increased management concentration on shareholder communications.

Finally, the awards of licences onshore Poland shows that management  plans to expand the portfolio and that it has the funds to not only fund the new – licences but also to ‘progress early assessment of prospectivity on that acreage’. 

I remain very confident that Prospex is in a good place, European gas markets are strong and I consider that they will stay that way for the foreseeable future. With a team in place that will not only deliver from the existing portfolio, it has already shown that it looks to expand geographically and use its vast experience to offer shareholders a very exciting future. 

Original article   l   KeyFacts Energy Industry Directory: Malcy's Blog