WTI (Feb) $59.12 +$1.36, Brent (Mar) $63.34 +$1.35, Diff -$4.22 -1c
USNG (Feb) $3.17 -24c, UKNG (Feb) 75.0p +3.61p, TTF (Feb) €29.37 + €1.53

Oil price

Oil was up strongly last week on the back of familiar stories around Iran and Venezuela, today it is off around 50 cents and Exxon are on the naughty seat after telling the truth about the ‘uninvestable’ nature of oil extraction in Venezuela for all the right reasons. 

Union Jack Oil

Union Jack has announced the appointment of Dr. Donald Zac Phillips (“Zac”) and John Americanos as Non-Executive Directors to the Board of Union Jack with immediate effect.

Dr Phillips, who will join the Board as an independent Non-Executive Director, is a senior energy executive and advisor with extensive experience in the oil and gas sector, advising on asset evaluation, project development and corporate strategy. He is currently a Director of TomCo Plc and provides oil and gas advisory services to investment banks through his company Oil and Gas Advisors Limited. Zac has previously worked for companies such as BP, Chevron, DB Petroleum, Merrill Lynch and ING Barings.

Dr Phillips is a chemical and petroleum engineer, holding a Masters in Petroleum Engineering and a PhD in Chemical Engineering. He is also a Member of the Institute of Chemical Engineers, a Member of the Society of Petroleum Engineers and a Member of the American Association of Petroleum Geologists. Zac has been providing the Board with independent evaluation support for a number of years.

Mr Americanos, who will join the Board as a Non-Executive Director, is a Chartered Certified Accountant (FCCA) and a founder and Director of John Alexander Ltd which focuses on the provision of accountancy services to businesses and sole traders. John also has significant experience in UK and international property development.

The Company also announces that Craig Howie’s office as a Director of the Company has been vacated by a resolution of the Board with immediate effect.

David Bramhill, Executive Chairman of Union Jack, commented:
“We have known both Zac and Johnny for many years and welcome them to our Board as non-executive directors.  Combined, they bring a wealth of technical and commercial skills that we expect will assist in formulating our forward growth strategy during an unprecedented period in the development of Union Jack, given the wider challenges facing the oil and gas sector both onshore UK and internationally.

“Zac will also assume the role of Senior Independent Director and will assist the executive leadership team in a number of areas including stakeholder liaison and maintaining corporate governance standards.”

Interesting, and good news to see UJO beefing up its board with these two appointments this morning. I know Zac very well and he is a vastly experienced and highly skilled operator across the oil & gas industry, and he will, without doubt, provide good quality input to the board as Senior Independent Director.

Whilst the announcement does not mention succession directly, I think that it is an interesting and very wise way for the company to address the senior management chain for the future and will ensure that shareholders are fully and properly represented. 

The share price has rallied today, and with its portfolio loaded with high-quality revenue-generating assets such as Wressle in the UK, as well as the good quality prospect in Oklahoma in the USA not to mention the potential elsewhere in the UK, such as West Newton, the shares look significantly undervalued. Investors should be happy with todays news. 

Reabold Resources

Reabold has announced this morning that Rohan Oza has increased his stake in the company from 3.43% to 4.17%, the shares are on the move again, up 12.2% today having tripled on the month. 

Over the long term the shares have risen 115% over 6 months and 222% year on year. Note my blog analysis of the situation from January 6th where i take a detailed look at oza and his recent history which is very impressive. 

I  remain confident that Reabold has an exciting year coming up and clearly Rohan Oza does too. 

Prospex Energy

Prospex has announced that it is now in receipt of committed subscriptions totalling approximately £1 million for the offering of its unsecured Convertible Loan Notes.

The Company also notes that it is extending the offering period to Friday 16 January 2026 to allow for further subscriptions to be made.  Further details on how to subscribe to the Loan Notes can be found below.

Highlights

• Committed subscriptions of £985,000 (including the £565,000 previously announced) for the Company’s offering of unsecured Convertible Loan Notes of £1 each, due at the end of June 2028 (the “Loan Notes”).  Offer now remains open until 16 January 2026.
• The Loan Notes are convertible at 3p per ordinary share at any time at the election of the investor.
• Interest of 12% per annum is payable quarterly, with the first two interest payments on 31 March 2026 and 30 June 2026 to be capitalised and added to the loan principal rather than paid in cash.
• Loan principal to be repaid in three tranches at the end of December 2027, the end of March 2028 and the end of June 2028.
• Forecast increased gas production from the drilling campaigns on all three of the Company’s production concessions is expected to cover the capital repayments.
• Net proceeds will be used to support the Company’s ongoing activities, including current and future capital expenditure requirements.
• Ongoing operational costs and overheads continue to be met from production income generated by the Company’s strategic asset portfolio.

Mark Routh, Prospex’s CEO, commented:
“The Company is very grateful for the support from shareholders towards the Loan Notes.  In order to allow time for further subscriptions to be processed, the Company has extended the Loan Note offering until the 16 January 2026.

“The proceeds of the Loan Notes will mostly be used to fund the Company’s ongoing capital expenditure commitments, in particular its 37% share of the cost of the 3D seismic acquisition programme on the Selva Malvezzi production concession in Italy which was successfully completed by the operator last month.

“The Company believes it has a diverse and highly prospective investment portfolio with the potential to deliver significant value over time and, on this basis, encourages shareholders to explore participating in the offer of the Loan Notes.”

Prospex are keeping the offer open for another few days, presumably so that potential investors swayed by the recent good news of Tom Reynolds imminent accession to the CEO office can participate.

Also good to see the Chairman putting his hands in his pocket for a bit more although on these favourable terms he would be questioned if he did not….Bring on February 1st.

Use of Funds and Structure

The funds raised from the issue of these Loan Notes is to fund the ongoing growth of the Company and its current and future capital expenditures.  Ongoing operational expenditures and overheads are covered currently from production income from the Company’s portfolio of assets.

Selva Malvezzi

£800,000 of the net proceeds is to fund the Company’s share of development costs at the Selva Malvezzi concession, in the Po Valley in Italy, which includes cash calls under the Joint Operating Agreement received and to be received from the operator in respect of the 3D seismic acquisition programme which completed last month.

Viura

£200,000 of the Loan Notes already issued settled the balance of the June 2025 cash-call on Viura in northern Spain, which was not fulfilled in cash by the Company at that time.  In order to assist the Company, HEYCO Energy Group, Inc. agreed that this £200,000 was converted into the Loan Notes.

Tarba – El Romeral

A total of £300,000 of the net proceeds is to meet the cost of a new transformer at the El Romeral power plant in Carmona southern Spain, which is due for delivery in 6-8 months, which is when the final payment of £235,000 will become due.  The transformer was ordered in November 2025 and a 20% deposit of £65,000 has already been paid.

Further Information on the Subscribers and the Loan Note

The Loan Notes will pay 12% interest per annum quarterly, with the first two quarterly interest payments on 31 March 2026 and 30 June 2026 to be capitalised and added to the loan principal rather than paid in cash.  Quarterly cash interest payments will be made thereafter with the first payment on 30 September 2026.  Unless converted, the Loan Note principal is to be repaid in three equal capital repayments scheduled at the end of December 2027, the end of March 2028 and the end of June 2028.  Forecast increased gas production from the drilling campaigns on all three of the Company’s production concessions is expected to cover the capital repayments.

The Company can elect to pay the interest in Euros by giving 10 business days’ notice.  The Company can elect, on a change of control of the Company, where a single party has over 50% of the issued share capital of the Company, to convert some or all of the issued Loan Notes, including capitalised interest, into ordinary shares at the lower of the 3p conversion price or the prevailing market price.  Accrued but unpaid interest may be paid in cash at the time of conversion or added to the loan principal and converted at the election of the Noteholder.

Existing share authorities are sufficient to satisfy any potential conversion of the maximum approved amount of £1.6 million plus any accrued interest.

The Company can elect to repay the Loan Notes in full or part at any time by giving the noteholders one months’ notice.

How to subscribe to the Loan Notes

The Loan Notes will be issued by the Company directly to each subscriber.

The Loan Note Investor Presentation and Term Sheet can be downloaded from the Company’s website at https://prospex.energy/investors/corporate-documents.

Further Loan Note Subscriptions from the Company Chairman

In addition to the £25,000 already subscribed on 19 December 2025, Bill Smith, a director of the Company, has subscribed an additional £50,000 in cash and agreed to a £15,000 conversion of directors’ fees owing, bringing his total contribution to the Loan Notes to £90,000.  In addition, he has also committed to subscribe for up to £150,000 of the Loan Notes subscriptions received to date depending on the total amount ultimately subscribed for by third parties.

Related Party Transaction

The additional committed subscription, and the potential further subscription, for the Loan Notes by Bill Smith, constitutes a related party transaction under the AIM Rules.  Due to the previous participation by all of the directors in the Loan Notes, there is not a director, or directors, independent of the issue of the Loan Notes to provide the necessary AIM Rule 13 related party transaction opinion.  Accordingly, Strand Hanson Limited, the Company’s Nominated Adviser, confirms it is satisfied that the terms of these subscriptions by Bill Smith are fair and reasonable insofar as the Company’s shareholders are concerned.

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