WTI (July) $93.89 -$2.71, Brent (July) $99.58 +$3.44, Diff -$5.69 +$5.23
USNG (June) $2.89 -2c, UKNG (June) 113.19p +1.06p, TTF (July)* €46.725 -€0.615
*Denotes expiry of June contract

Oil price

Oil is weaker again as I write, WTI down $2 and Brent by $3, further talk from Iran is that the Government is assessing the US memo, anything could still happen…

BP

CNBC reported today that the WSJ had written that the BP board removed Bert ‘over accusations of verbal abuse and bullying’ and that they believed that he ‘mishandled co’s information and withheld information from the board’.

Dame Amanda Blanc said the board  had discovered a wave of instances of serious misconduct, with reports of “volcanic” behaviour and bullying claims emerging after BP’s initial statement. “The board has been surprised and disappointed to learn of governance oversight and conduct issues it deems unacceptable and has taken decisive action,” Blanc said.

As I said yesterday the company has been a textbook case of appalling board decision making from Macondo and Tony H,  through Browne in court, Bo Diddley in Russia, Looney and the Loonettes, Murray A and so on. Whatever next, at least Meg is in place which is the one piece of good news from BP in a long time. 

Arrow Exploration Corp

Arrow has announce the filing of its Interim Condensed (unaudited) Consolidated Financial Statements and Management’s Discussion and Analysis for the three months ended March 31, 2026, which are available on SEDAR (www.sedar.com) and will also be available shortly on Arrow’s website at www.arrowexploration.ca.

Q1 2026 Highlights:

• Average corporate production of 4,715 boe/d (Q1 2025: 4,085 boe/d).
• Recorded $23.5 million of total oil and natural gas revenue, net of royalties, representing a 21% increase when compared to the same period in 2025 (Q1 2025: $19.5 million).
• Adjusted EBITDA(1) of $14.1 million, a 22% increase when compared to the same period in 2025 (Q1 2025: $11.5 million). 
• Realized corporate oil operating netbacks(1) of $41.05/bbl. 
• Cash position of $14.2 million at the end of Q1 2026.
• Q1 2026 operating cashflows of $13.6 million.
• Drilled three additional development wells in the Mateguafa Attic (M) field in the Tapir block
• Net income of $5.2 million.

(1) Non-IFRS measures

Post Period End Highlights:

• Drilled the Icaco-1 (IC-1) exploration well, which has resulted in a discovery of three oil bearing sands
• Spud the Icaco-2 (IC-2) appraisal well which will help delineate the pool and determine initial volumes and areal extent of each individual oil producing zone
• Drilled one additional Mateguafa Attic well (M-HZ12)

Cash Balance:

On May 1, 2026, the Company’s cash balance was US$24 million. Arrow increased its cash balance while continuing capital expenditures and drilling activity demonstrating strong operating leverage and self-funded growth capability. This balance reflects a significant improvement in netbacks, due to higher crude oil prices and increases in the Company’s production, even with continued capital expenditures. 

Tapir Extension

The Company continues constructive engagement with authorities regarding the Tapir block extension and believes it is well positioned to secure the extension based on satisfaction all of the relevant requirements.   Arrow will keep the market updated on progress with its license extension discussions in future releases.

Upcoming Drilling

The Company has spud the IC-2 well, which is expected to be put on production over the coming weeks. Thereafter, the Company expects to continue drilling additional development wells at its Icaco field and recompletions in several Mateguafa Attic wells during Q2 2026.

Marshall Abbott, CEO of Arrow Exploration Corp., commented:
“The first quarter of 2026 has been very busy for Arrow. We completed additional development wells in the Mateguafa Attic and planned for the drilling the Icaco-1 exploration well, which proved very successful post period end. We are excited by the Icaco discovery and believe it could become a major production platform with a material impact on the Company.” 

“The focus for the remainder of 2026 will be to drill additional wells at the Icaco pad, drilling development wells on the Alberta Llanos and Carrizales Norte pads and numerous well recompletions to improve productivity in our currently most prolific fields.”

Another excellent update from Arrow today but while these historic figures for 2025 are impressive they only show a small piece of what is a fantastic last few months. They show revenues, net profits and EBITDA strongly better giving net cash of $14.2m by the end of 1Q 2026, driven by the huge success of the drilling programme at the Mateguafa Attic is already getting even better. 

Going forward, I wrote yesterday about the success of the IC-1 well at Icaco and with the company being in such a strong financial position they are fully funded for a campaign here, the IC-2 well is already spudded and there are spaces on the pad with more cellars are being built. 

I remain full of confidence for growth in the Arrow portfolio, the balance sheet is robust and there are so many drilling opportunities that this year should enable the company to make substantial returns, my 40 target price could easily be conservative. 

Union Jack Oil

Union Jack has provided further information regarding the Company’s Annual General Meeting (“AGM”) which will be held on 26 June 2026 at 11.00 a.m. at the George White Suite, The Bristol Hotel, Prince Street, Bristol, BS1 4QF. The full notice of AGM is included in the Company’s Annual Report and Accounts which is available to view on the Company’s website and will be posted to shareholders on or before 1 June 2026.

The purpose of this announcement is to provide further information on two of the resolutions that will be put to shareholders at the AGM. The first of those resolutions (Resolution 7) concerns the proposed appointment of Craig Howie (the “Proposed Director”) to the board of directors of the Company. The second resolution (Resolution 10) is proposed to seek the approval of shareholders for a share capital reorganisation, which consists of a sub-division and redesignation of the existing ordinary shares of the Company.

1. Further information on Resolution 7: Proposed appointment of Craig Howie as a director of the Company (the “Proposed Director”).

On 6 May 2026 the Company received a request for certain ordinary resolutions to be included in the business to be considered by shareholders at the AGM. The request was made on behalf of a nominee shareholder representing the Proposed Director, holding a total of 13,421,874 ordinary shares in Union Jack, equivalent to approximately 9.16% of the Company’s issued share capital. The request included a resolution to appoint former director, Craig Howie, to the board of directors (the “Board”) of the Company, as well as separate resolutions to put each of the current Directors up for re-election.

The Board would like to make clear to shareholders the background to the above request to appoint the Proposed Director.

On 12 January 2026, the Proposed Director resigned from the Board at the unanimous request of the other Directors of the Company at that time. The Proposed Director’s resignation followed a series of actions (including a demonstrable lack of knowledge as to the vital role of the technical team in a listed company focused on oil and gas exploration and material breaches of confidentiality contrary to his legal and contractual obligations as a Director) which were considered by the other Directors such that his position had become untenable.

Recommendation regarding Resolution 7

The Directors (other than John Americanos) recommend that Shareholders should vote AGAINST the resolution to appoint Craig Howie to the Board of the Company for, inter alia, the following reasons:

a) The Proposed Director is opportunistically trying to gain control of the Company, its operational asset base and its cash without paying a control premium.
b) Although his voting intention in respect of the re-election of the existing Board members has not been formally clarified, the Board is of the view that the Proposed Director is seeking to remove those Board members that have experience of running listed companies focused on oil and gas exploration.
c) The Proposed Director has not proposed any suitably experienced directors to replace any existing Directors, should the existing Directors be removed.
d) The disappointing and highly unprofessional campaign of negative publicity levelled at the Company, in which the Proposed Director has sought to spread both confidential Company information, private personal information on certain Directors and contractors, and misinformation with the intent of influencing shareholders’ perspective of the Board, along with the Proposed Director’s previous actions as a Director before his requested resignation at the start of this year, raises serious questions as to the suitability of the Proposed Director to serve as a director of a listed company.
e) The Proposed Director has not outlined any form of alternative strategy to ensure value for shareholders should he be appointed to the Board and the existing Directors are not re-elected.

The request by the Proposed Director to be re-appointed to the Board of the Company, along with the contemporaneous campaign of misinformation and negative publicity have caused serious and extremely unwelcome disruption and expense to the Board, the Company and its shareholders, particularly at a time when the Board is focused on managing forward expenditures.

Summary

The Directors strongly believe that the existing Board of Directors is best placed to drive forward strategy and create value for shareholders. A major concern is that the Proposed Director has not presented a clear strategy for Union Jack, unlike those Directors that have implemented a successful strategy, built and developed the Company’s portfolio of assets and have a forward strategy focused on value-accretive opportunities and increasing shareholder value.

2. Further information on Resolution 10: Proposed subdivision and redesignation of the Company’s existing ordinary shares (the “Reorganisation”)

Under Resolution 10 and to take account of trading in the Company’s shares at below the nominal value  of those shares (being 5p), the Company is proposing that each existing ordinary share of 5p nominal value will be subdivided and redesignated into one ordinary share of 0.05p nominal value and one deferred share of 4.95p nominal value, having (as with the Company’s existing deferred shares) very limited rights, and every 22 existing deferred shares of 0.225p each will be consolidated into one new deferred share of 4.95p (with any fractional entitlements being rounded down and forfeited). Apart from having a different nominal value, each new ordinary share of 0.05p following the Reorganisation will carry the same rights as set out in the Articles that currently apply to the existing ordinary shares of 5p each. The number of ordinary shares in issue will not change as a result of the Reorganisation.

Background to and reasons for the Reorganisation (Resolution 10)

The Directors (other than John Americanos) are recommending that shareholders vote FOR the resolution to approve the Reorganisation in order to remove an obstacle to the raising of additional funds to meet expected future value-accretive investment opportunities and to increase shareholder value.  The approval of the Reorganisation will not of itself authorise the Board to raise equity funds.

Operations update

With a backdrop of volatile energy markets with high oil prices and equally high European and international gas prices, the Board of Union Jack remains resolute in its commitment to the merits of the strategic direction that it set in train at the end of 2024. The Board has embarked on what it considered was a necessary international diversification into the attractive oil and gas opportunities now available to the Company in the USA while taking full advantage of what the UK portfolio offers to deliver future growth in production, reserves and deliver material shareholder value.

The Company’s partnership with Reach Oil and Gas (“Reach”) in Oklahoma has already produced encouraging results, with the five wells drilled and tested to date achieving an 80% success rate and generating profitable returns, alongside further upside potential from ongoing drilling activity. Flagship UK assets at Wressle and Keddington continue to provide important production and revenues, while the Company has taken decisive action to streamline operations, reduce costs and focus capital allocation on high-growth opportunities. Despite challenging market conditions and impairments relating to certain licences, the Board remains confident that its disciplined strategy, growing US portfolio and strong operational momentum position Union Jack well for future production growth and reserve expansion.

Further update and strategy

The Crossroads well in Oklahoma was spudded on 5 May and encountered good hydrocarbon shows at several levels from the Hoxbar down to the Basal McLish intervals. The technical team at Reach has informed the Company that the evaluation and testing will begin in mid-June. The Board looks forward in anticipation of success at Crossroads, which has excellent upside potential.

Working with Reach, the Company has also identified additional attractive value-accretive targets which, when it is adequately capitalised, it will then consider progressing to drilling.

Cost optimisation measures

As announced on 30 January 2026, the Board of Directors has implemented a programme focused on costs and efficiencies, designed to preserve capital and extend the Company’s cash runway. These initiatives include disciplined reductions in discretionary expenditure, including reduction in advisory fees, prioritisation of core revenue-generating activities, and operational efficiencies within the business. The Board has also resolved to reduce their remuneration packages, following the AGM and subject to their reappointment as Directors, to prioritise expenditure on exploration rather than corporate overheads.

Collectively, these actions are intended to align the Company’s cost base with its near-term strategic objectives, strengthen financial resilience, and provide additional time and flexibility to execute on its short and medium-term plans. The Board continues to actively monitor the Company’s liquidity position and will take further prudent steps as necessary to safeguard shareholder value.

Higher oil prices

Recent developments in the Iran crisis have led to significant volatility in global oil and gas markets, with prices rising sharply due to disruptions in supply and heightened geopolitical risk. Tensions affecting the Strait of Hormuz, a critical route for approximately 20% of global energy shipments, have constrained flows of crude oil and liquefied natural gas, pushing benchmark oil prices close to US$100 per barrel and increasing gas prices across Europe. These supply constraints, coupled with ongoing uncertainty around ceasefire efforts and shipping security, are expected to keep energy costs elevated in the near term, with analysts warning that full market stabilisation will take many months after tensions ease.

Although higher energy prices have positively strengthened the Company’s short-term revenues, a sustained higher energy price environment is also expected to enhance the attractiveness of further investment in value-accretive oil and gas projects and provide the Company with the option to raise additional funds to capitalise on such opportunities. Any new funds raised would be used to accelerate the identification of attractive drill targets in Oklahoma.

Recommendation regarding Resolution 10

Given the wider macro-economic environment and the near-term opportunities identified in the US, which, with access to the requisite financing, the Company can then take full advantage of, the Directors (other than John Americanos) consider the Reorganisation to be in the best interests of the Company and its Shareholders as it will remove an obstacle to the raising of additional funds to meet expected future value-accretive investment opportunities and to increase shareholder value. The approval of the Reorganisation will not of itself authorise the Board to raise equity funds.

The Directors recommend that Shareholders vote FOR the Resolution relating to the Reorganisation to be proposed at the General Meeting, as the Directors intend to do in respect of their own beneficial shareholdings.

I find this somewhat disturbing as readers know that I have been following UJO for many years and seen a real improvement in fortunes recently. Given that the state of domestic hydrocarbon politics is so difficult, with both Central and local Government forcing net zero policies on companies despite the ever increasing demand for domestic oil and gas production, what the company has achieved seems to be pretty impressive. 

Precisely, its strategy in recent years has been to progress onshore UK as best as has been possible, in this case building its stake in Wressle from 8% to 40% which has brought in much needed revenue and has, and will continue to make it possible to explore other parts of the licence.

At West Newton along with a positive group of partners, the development is now drawing near, this year will see the recompletion of an earlier well A-2, and there are also plans for a further drilling programme including a horizontal well to maximise potential production. 

Finally, given that unhelpful attitude from Westminster, UJO has decided to head west and it has built a substantial and rewarding portfolio of onshore licences in the USA which mitigate the risk in the UK and has already been rewarding in terms of discoveries and even some revenues.

This sorry state of affairs is very disappointing, I remain confident that the strategy at Union Jack is the right one and will prove rewarding to shareholders as it unfolds both domestically and in the USA. My target price of 30p has been in place for some time and it shows that there is upside and that the current board are doing the right thing. This looks to be trying to take over the company on the cheap…

Afentra

Afentra has announced that the Risk Service Contract for onshore Block KON4 has been formally approved and awarded by Presidential Decree on the 26 May 2026. 

Afentra has been awarded a 35% operated interest in KON4 alongside our local Angolan partners Grupo Simples Oil, Sonangol E&P, Brite’s Oil and Gas and Sodedurs. The formal signing of the contract is expected at a later date.

The award of KON4 further strengthens Afentra’s position in the onshore Kwanza basin and expands the Company’s operated portfolio in Angola. The block contains multiple legacy oil fields, including the large Quenguela Norte field, and offers field re-development opportunities alongside overlooked near-field exploration potential. KON4 complements Afentra’s existing onshore Kwanza licences and supports the Company’s strategy of building a material position in the basin. 

About KON4

KON4 covers 1,387 sqkm and is situated in a historically productive area of the onshore Kwanza basin, where 11 oil and 2 gas fields have been discovered and over 90 mmboe produced to date. The block features the Quenguela Norte field – the largest onshore discovery in the onshore Kwanza basin to date – estimated to hold over 200 mmbo of discovered oil in place in Tertiary reservoirs. The field achieved peak production of 12,000 bopd, with 46 mmbo recovered before it was shut-in and abandoned in 1999. This field represents an opportunity to unlock significant value through the reactivation of the field production, supported by modern technology and re-development techniques that have advanced considerably since the fields were last in production decades ago. In addition, the Block’s proximity to the Luanda refinery and the existing road infrastructure could allow early production and export to the refinery.

KON4 also provides low-cost, overlooked near-field Tertiary and Cretaceous age exploration opportunities that further enhance Afentra’s footprint and strategic optionality in the onshore Kwanza basin. Our portfolio of KON4, KON15 and KON19 offer a complementary portfolio with exposure to a diverse range of play types – across both post-salt and pre-salt petroleum systems – as well as opportunities to appraise and re-develop multiple discovered but abandoned oil fields.

Work Programme & Next Steps

Initial technical and subsurface work has commenced on the block, with the contractor group progressing the agreed early-phase work programme. This has focused on subsurface studies assessing reactivation of the Quenguela Norte wells, alongside the review of all local permitting and above-ground requirements. In parallel, a workstream assessing the greater exploration potential of Block KON4 has also commenced with interpretation of the recently completed high resolution eFTG survey being integrated with the existing sparse 2D seismic data. Further updates on forward work plans and timing will be provided in due course.

Paul McDade, Chief Executive Officer of Afentra plc, commented:
‘“The formal award of KON4 is a significant milestone for Afentra, adding an operated position to our growing onshore Kwanza basin portfolio and reinforcing our commitment to building a material presence in this under-explored but highly prospective basin. KON4 brings a compelling mix of near-term redevelopment potential – anchored by the Quenguela Norte field – and meaningful exploration upside, supported by favourable fiscal terms and proximity to the Luanda refinery. Together with our non-operated interests in KON15 and KON19, we now hold a well-rounded and complementary position across the basin. We look forward to progressing the work programme with our partners and will provide further updates as our technical evaluation advances.”

Good to see the onshore part of the Afentra portfolio getting further underway with the award of KON-4 where the company are operator and have a 35% working interest. The block looks very exciting, it has existing discoveries and what looks like significant potential at very low cost in what is rapidly becoming a growing onshore portfolio. 

With exciting offshore wells expected to show promise and the strategic review clearing the way forward for Afentra the outlook is highly positive, the shares, up c.90% over the last 6 months and some 25% since the last Bucket List update in which it has a fully justified slot, my target price of 100p doesn’t look too demanding. 

Europa Oil & Gas

Europa has announced its final audited results for the 17-month period ended 31 December 2025.

Financial Performance

17 months to 31 December 2025 versus 12 months to 31 July 2024

• Revenue £3.9 million (12 months to 31 July 2024: £3.6 million)
• Gross profit of £0.3 million (12 months to 31 July 2024: £0.3 million)
• Administrative expenses of £2.4 million (12 months to 31 July 2024: £1.9 million) representing a decrease on a pro-rata time basis
• Pre-tax loss of £2.7 million (12 months to 31 July 2024: £6.8 million)
• Net cash used in operating activities £0.2 million (12 months to 31 July 2024: £0.6 million)
• Cash balance at 31 December 2025: £0.3 million (31 July 2024: £1.5 million)

Operational Highlights

Equatorial Guinea

• In December 2025, the Company, via its 42.9% stake in Antler Global Limited (“Antler”), signed a binding Farm-out Agreement (“FOA”) with Fuhai (Beijing) Energy Limited (“Fuhai”) under which Fuhai acquired a 40% interest in the EG-08 PSC in offshore Equatorial Guinea, subject to the relevant regulatory approvals
• Fuhai will fund 95% of the Barracuda well costs (capped at $53 million) with Antler funding the remaining 5%
• The well targets the 893 BCF Barracuda prospect
• Antler remains operator
• Fuhai will recover its carry (with interest on 45%, capped at 5%) from production revenues; interest is waived if no commercial discovery
• EG-08 holds ~2.2 TCF prospective resources (Pmean), with Barracuda as the primary target and estimated to be 893 BCF (Pmean) with an 80% chance of success
• Post-deal ownership: Antler 40% (Operator), Fuhai 40%, GEPetrol 20%, resulting in a net attributable percentage to Europa of 17.2%
• Drilling of Barracuda is expected to commence in late 2026 or early 2027 following receipt of necessary approvals

Offshore Ireland

• 100% interest in the FEL 4/19 licence containing the 1.5 TCF (Pmean) Inishkea West gas prospect, located near the Corrib gas field, enabling potential infrastructure synergies and low carbon-intensity gas supply
• Attractive project economics, with an estimated post-tax NPV10 of US$2.0 billion
• The Company continues to seek a farm-in partner and believes the asset could be brought online quickly due to its proximity to existing infrastructure
• A successful discovery could supply over two thirds of Ireland’s gas demand by 2030
• Post-Period end, the Phase 1 FEL 4/19 licence term was extended to 31 January 2028, providing additional time for technical evaluation and efforts to secure a farm-in partner

Onshore UK

• Wressle produced an average 281 bopd (Europa’s net share: 84 bopd)
• Development plans include a new well targeting the Penistone Flags reservoir and a gas monetisation solution
• A five-year extension to the DL003 licence at West Firsby was secured in November 2025
• The Company continues to investigate and assess options to increase returns from the UK onshore sites

Post Reporting Period Events

• Europa successfully raised a total of £4.1 million, of which £3.5 million was through the placing of new ordinary shares to institutional investors. The Company also raised further aggregate gross proceeds of £640,000 following an oversubscribed WRAP retail offer, (the “Placing”)
• The proceeds of the Placing will go towards financing drilling of the Barracuda prospect and provide general working capital to support working commitments on other licence interests. The Placing has further strengthened the Company’s balance sheet and demonstrates the ongoing shareholder support for the business
• At Cloughton in North Yorkshire planning approval to test and appraise the commerciality of the 137 BCF resource was refused by the North Yorkshire Council planning committee in May 2026, against the recommendation of the Council’s own planning officers. The Company is now assessing options with a view to appealing. The application is supported by 13 studies from independent experts, and a farm-in partner is being sought

Change of accounting reference date

• Last year, Europa announced a change to its accounting reference date from 31 July to 31 December. This change aligns the Company’s financial reporting period with the calendar year and allows for enhanced comparability with peer companies in the oil and gas industry. It also aligns more closely with industry standard timeframes for project work programmes and budgets. As a result, the full annual report covers the 17-month period ending 31 December 2025. In accordance with Rule 18 of the AIM Rules, therefore, the Company has prepared these final results for the 17 months to 31 December 2025. The comparative figures are presented for the 12 months ended 31 July 2024.

William Holland, CEO of Europa, said:
“The 17-month period to 31 December 2025 has been the most significant in Europa’s recent history, and one that I believe sets the Company on a genuinely transformational path. We have made meaningful progress across our portfolio, but it is the signing of the Farm-out Agreement with Fuhai Energy in Equatorial Guinea that stands out as the defining moment of the period. 

The farmout of a 40% interest in the EG-08 licence to Fuhai, securing a carry on the Barracuda exploration well, is the direct result of three years of careful technical and commercial work since we first acquired our stake in Antler. Fuhai’s decision to commit is a powerful endorsement of the quality of the asset given their scale and experience as a major player in China’s petrochemicals sector. With an estimated 893 BCF (Pmean) of prospective resource, coupled with an 80% geological chance of success, Barracuda is a genuinely high-quality exploration target, and we are targeting spud in Q4 2026 or early 2027. 

Beyond EG-08, encouraging progress continues to be made across our broader portfolio. At Wressle, production averaged 281 bopd gross throughout the period and the development plan to target the Penistone Flags reservoir continues to advance. In Ireland, Inishkea West remains an exceptional undrilled gas prospect and the recently approved licence extension to January 2028 gives us additional time to secure the right farm-in partner. We remain confident in the merits of the Cloughton gas appraisal well and are pursuing an appeal whilst opening a data room to attract a farm-in partner.

The oversubscribed £4.1 million equity raise completed after the period end reflects the continued support of our shareholders and strengthens our balance sheet ahead of what promises to be an exciting year. We remain debt-free, our UK production continues to generate cash, and we now have a funded pathway to drilling a well that could genuinely change the scale of the business. We look forward to keeping shareholders updated as we move towards that milestone.”

There is nothing much to add to these figures, even if they do cover 17 months after a change in the year end to a more comparable calendar period. As CEO Will Holland says above it is all really about Equatorial Guinea for EOG where the farm-out to Fuhai gives them a carry on the Barracuda exploration well.

The company state that it has an estimated 893 BCF of prospective resource and for an exploration well has a very high GCOS of some 80% which makes it ‘a genuinely high-quality exploration target’ which EOG are targeting to spud in Q4 2026 or early 2027. 

The shares, having performed very strongly indeed over a year have drifted back and are actually down over six months, it may be a little while before the pre-drill excitement starts but start it will…

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