Union Jack Oil

Contrarian Investor Portfolio Review October 16th 2019

Greetings from Shanghai Contrarians! In order to aid transparency in what I write about, here is the first Contrarian Investor Portfolio. I will only cover my larger and more speculative or interesting holdings and put down a few of the stocks I am watching.

Please note I scale in and scale out of a position. Never sell at the top and hopefully never at bottom. Use Spread bets and CFDs., increasingly the former. Don’t use automated stops on small caps because of volatility and accidental stops being triggered on “shakes”. Tend to cut a position after a 20 percent loss.

UK Oil and Gas (UKOG) Average purchase price 1.2p Curret share price 1.10-1.20p

I have followed UKOG for many years and was a large investor during the Broadford Bridge drill in 2017. It was a profitable trade then, but didn’t manage to sell at the top at 7.4p. Broadford Bridge was a real cock up because of drilling issues.

I started buying UKOG again in the last few weeks before Surrey County Council Planning and the arrival of the drilling rig at HH. At around 1p, even with 6 billion shares in issue, it does look very good.

The news from Horse Hill yesterday on the coring samples from the HH-2 well was excellent..

“Preliminary visual analysis of a total of 241.45 ft of core has clearly identified the Portland reservoir's most productive zone or "sweet spot", which will now be the target of the planned circa 1,000 m HH-2z horizontal trajectory, expected to commence next week.

Live oil was observed "bleeding" profusely from core throughout the sweet-spot, the Upper Portland reservoir's most porous, permeable and oil productive interval. Lesser degrees of oil bleed, together with oil shows and oil staining were also observed from porous sandstone intervals lying above and below the sweet-spot. The core is now at a Surrey-based laboratory, where an extensive geological and petrophysical analysis programme is now underway. Results of analyses that directly impact the field's possible increased oil in place and recoverable oil volumes will be reported in due course.”

UKOG looks very undervalued at 1.2p. See https://contrarianinvestor.net/posts/2019/9/26what-is-ukog-worth-part-2

The drilling is HH is going very well. No cementing issues or acid wash problems like at Broadford Bridge. The geology of HH is different and lessons have been learnt. The excitement begins now as the HH-2-z horizontal well is being drilled right now, with the newly identified “sweet spot” as the target. Horse Hill has planning for up to 16 tankers a day initially, is in a calm geo-political environment of Horley Surrey and the site is already producing 250 bopd from the kimmeriddge. Tankers are leaving on a regular basis to Horley.

UKOG is an exciting prospect and I am targeting 2-3p once the Yorkville Associates shares for the Tellurian aqcquisiton (to enable 86% of Horse Hill to be owned by UKOG), further good news should boost things nicely. Don’t forget the new horizontal well will be 1000 metres long and 1000-1500 bopd choked is more than possible, New wells will be drilled in Q1 2020 to allow 3500 bopd. Lessons have been learnt by Steve Sanderson and the team over the last few years and hopefully the perfect drill so far contunues into the end of 2019.

Union Jack Oil (UJO) Average purchase price 0.22p Current share price 0.20-0.21p

I managed to see David Bramhill, Exec. Chairman of Union Jack Oil last Friday and it was a very interesting chat. I have bought in recently and it was great to hear about the forthcoming plans for Wressle, West Newton and Biscathorpe over the coming months.

Link to David Bramhill meeting notes Meeting with Dave Bramhill (Exec Chairman of Union Jack Oil) October 11 2019- exciting times ahead

Just to reiterate, no short term plans for a placing but there will be medium term.

Timings Summary (CI estimates):

West Newton

Extended Well Test November 2019

CPR Jan/Feb 2020

WN B Spud March 2020 (could be earlier or later)


Planing inquiry November 5th - November 9th 2019


New seismic assesmment October - November 2019

Metro Bank (MTRO) Average purchase price 210p Current share price 204p

Even with the Brexit banking bounce Metro Bank hasn’t benefitted, compare with Lloyds bank for example. At 204p, the bank looks very undervalued, even with all the bad news over the last few months. The bank won’t go bust after a succesful bond issue (albeit at 9.5% coupon) and it looks very cheap versus book value. It has come down from 3000p in 2018 and the last placing in May was at 500p. Vernon HIll has been forced to leave to get the MREL related bond issue away and there are rumours that he is trying to take MTRO private. Hedge funds are shorting but upside on any good news looks strong.

See full SWOT analysis on Metro Bank at https://contrarianinvestor.net/posts/2019/10/9/swot-analysis-for-metro-bank-good-punt-or-too-risky

It has been a challenging year for Metro Bank, with the lender facing intense speculation over the health of its balance sheet earlier this year due to a £900 million accounting error. However, concerns have been redcued after the bank successfully raised £375 million via a share placing in mid-May which was over subscribed. In September MTRO raised $350 million in a bond issue.

The bank is likely looking to put the first half of 2019 far behind it and instead focus on delivering costs efficiencies and continued growth in capital-light fee income.

The bank is also busily expanding its presence in the North of England in the hopes of empowering growth for SMEs in cities like Manchester, Liverpool and Birmingham. Metro Bank plans to open around 10 new branches in 2019.

Highly capitalised - after ¢350 million bonds fundraise in September and $375 million equity raise in May to meet MREL (Minimum Requirement for Own Funds and Eligible Liabilities) requirements, oversubscribed. See more on MREL, SRB, and BRRD in link: Is the Bank of England behind the Metro Bank Chaos?

  • Deposits of £13,7 billion, net outflows of £2 billion in H1 2019 caused by bad publicity (buy July has seen £700 million in net in-flows)

  • Year on year loan growth of £3 billion to £15 billion

  • Number one bank in UK for quality of service according to latest Competition and Market Authorities Survey. Watchdog BBC calls them the No.1 UK bank for customer service.

  • Customer account growth of 190,000 to over 1.8 million, though rate of growth down from 201,000 in H1 2018.

  • Net book value over £10 per share, compared with £2.10 share price

  • Full banking licence in the UK

  • Increasing number of UK branches

  • Good initiatives with Fin Tech companies to improve service and customer analytics.

The shares have lost more than 85% of their value since the beginning of January, with the Metro Bank’s share price closing at 204p on Tuesday’s session, down from the £17 levels it saw at the start of the year.

The management says 2019 is a ‘year of transition’, with the lender focused on upgrading its cost savings guidance to the upper end of its original range and rebalancing its lending mix.

Q3 earnings are key on October 23rd and watch this space for a replacement for Vernon hill.

Reabold Resoures (RBD) - Average Purchase Price 0.94p Current Shares price 0.9-0.95p

RBD succesdully rasied £24 million at 0.9p this week, only a 12.5 discount to the prevailing market price to develop the West Newton field (17% share for UJO). The fact that the company got away the placing succesfully in this difficult market for AIM oil and gas speaks volumes. Lots of news flow for West Newton, extended well test and Competent Persons report to confirm volumetrics and once flow test completed, reserves.

See https://contrarianinvestor.net/posts/2019/10/9/all-systems-go-for-west-newton-and-union-jack-oil-as-reabold-gets-24-million-placing-done?rq=reabold

Other recent trades

Woodford Patient capital investment trust - one week trade at loss (fortunate timing before yesterday’s bad news) https://contrarianinvestor.net/posts/2019/10/15/woodford-asset-mananagement-to-close-equity-income-fund

Short S&P 500 - closed, too much good earnings news and Brexit, china deal head wind. Will revisit as S&P hits all time highs of 3000.

British American Tobacco - short trade as shares fell to 2600-2700p range as most earnings in foreign currency and £ rising.


Hurricane Energy, Imperial, BAT, I3E, Petro Matad, VAST.

What's happening with AIM oil and gas - pretty bombed out

AIM oil and gas october 2018 to October 2019

Both AIM (Alternative Investment Market) and the Oil/Gas stocks within it have been pretty dire over the last few months. Double digit declines and investor’s shouldn’t forget that 50% of a shares value is related to what sector it is in (approx). With Brexit and China trade fears, risk is off the table. Hence AIM is sold off as well as smaller FTSE 350 in economically sensitive areas e.g. financials, oil.

I have investments in UKOG, Union Jack Oil (UJO) and Reabold Resources (RBD) in oil and gas AIM at the moment which I bought in the last few weeks on hopes of a rebound in sentiment if Brexit deal sorted etc.

Contrarian Investor generally looks at valuation and critically news flow. All three of my Oil and gas minnows have plenty of news flow.

  • UKOG - Horse Hill drilling of HH-2 well during October. All on track so far.

  • UJO - Updates on West Newton, Wressle planning (Nov 5) and Biscathorpe. No placing imminent.

  • RBD- Update on West Newton, specially Extended well test and CPR. Exciting prospects after placing.

ukog share price 2014-2019

Others on my watch list include Hurricane Energy (HUR), I3 Energy (I3E), Petro Matad (MATD) and Rockhopper (RKH). Watching but not pounced yet, HUR and I3E in particular look oversold, but dependent on well results. Rockhopper could be a good one if Sea Lion ever gets off the ground and progress in financing seems to be being made.

Many bargains out there in this bombed out sector but if a Brexit deal is done, “riskier” assets might be back on the table. So many have lost so much money on AIM that I don’t blame fear e.g. UKOG down from 10-11p (intraday following Broadford Bridge well news) in 2017 to 1.15p now (partly due to botched Broadbridge Bridge cement job), UJO halved from 0.38 to 0.2p now due to @chrisoil share sales (he’s gone into RBD) as well as sentiment, RBD, a 1.75p 52 week high, now 0.92p.

Bombed out, but there looks like some good stories out there. I’m being very contrarian and brave and buying now as I think Brexit will be sorted before October 31 (hopefully with a deal), and AIM oil and gas may be back on the table soon. News flow from UKOG’s Horse Hill and UJO/RBD West Newton will be great to see and I think it will be positive.

Always looking for investing ideas, please contact me at contact@contrarianinvestor.net

Meeting with Dave Bramhill (Exec Chairman of Union Jack Oil) October 11 2019- exciting times ahead

David Bramhill October 11th 2019

Great to meet the Executive Chairman of Union Jack Oil (UJO) this morning for breakfast in Bath, for an informal get-together and chat. As a shareholder, I was keen to talk about some of the company’s prospects for the future and share with the contrarianinvestor.net readers.

Just to be clear and transparent, I own shares in Reabold (RBD) and UJO but am not paid by UJO or any associated companies and do not have any links with Mr. Bramhill or the board of directors. I am of the opinion that West Newton is looking very promising, but not entirely without risks as is the case with any oil drilling campaign, anywhere in the world. The West Newton project (WN) been endorsed in The City by the £24 million Reabold Resouces (RBD) placement this week at just a 12% discount in this horrible market for IPO’s and placings.

Royal Crescent Bath

Reabold (RBD) Placing

RBD’s placing of £24 million was placed at 0.9p with investors this week and the majority of the proceeds are intended to be used to meaningfully increase Reabold's interest in Rathlin Energy UK Ltd, to fund and accelerate the permitted, two well work programme, assess and process seismics and conduct testing at the West Newton project and provide the required funding for the IM-2 well. Also exercise the existing option in Danube Petroleum Ltd.

Reabold (RBD) in essence,and subject to the general meeting on October 29th, own 75% of Rathlin Energy (UK) , through a £16 million cash investment and a £7 million equity swap with existing Rathlin shareholders. The deal could fail to be passed at the EGM but this would be highly surprising!

As ever, DB was tight lipped about anything not in the public domain, but rather usefully the RBD placing documents give out a lot of information which informs shareholders what a super prospect that West Newton is. With a lot of imminent news flow from West Newton, Wressle, Biscathorpe and Keddington and it’s exciting times for DB and the team as well as shareholders. Looks very promising!

West Newton RBD


On the issue of funding for UJO’s 4 major prospects West Newton, Biscapthorpe, Wressle and Keddington. The bulletin boards are ablaze with “speculation of imminent funding and a placing”. From the budget shown in the RBD document, funding will be required for West Newton at some point, but given the RNS news flow expected from DB and UJO, the placing is unlikely to be in the short term at the current share price (subject to general stock market conditions of course!).

The company had around £2.8 million in cash at September 20th 2019, and no debt at the moment and the company is close to that position as of October 11th.

The West Newton B well will cost around £6-7 million, assuming that Reabold / Rathlin decide to drill a horizontal rather than vertical well (with production of 1000-1500 bopd). The RBD documents say that the WN-B well is planned End Q1 2020, but it could be sooner. A drilling rig costs around £25,000 a day.

A placing will come and is necessary to do work on the 4 projects but it is unlikely to be imminent. News flow will mean that a placing can be done at a higher price than now in October. DB was of course unable to give me timings. I would expect a lot higher share price than 0.2p. DB was clear - Any placing will be value accretive to the company and investors.

CPR and EWT on West Newton

Analysis of the data from the West Newton A well is ongoing. Volumetrics and oil quality data for the project are being done. This takes time to get it right! The fact that RBD got their placing away in this market at a 12 percent discount speaks volumes about the likely result. As DB said, “its important to get a CPR right. You can’t rush these things! Once the analytics are finished by the third party, the CPR will be released”. Once the audit by the analytics company is complete, A Competent Persons Report (CPR) will be issued to define resources and once the EWT (Extended Well Test) is complete, a reserves report will be available.

The Extended well test at West Newton will start in late November according to RBD, but it could start earlier or even be delayed once the analytics on the volumetrics are completed. WN is of carboniferous geology so oil can flow at very high rates, especially if using horizontal wells. Highly reassuring for investors!

West Newton is a 176,000 acre licence with many potential West Newton lookalike prospects, so there may be other exciting wells not just WN. All carboniferous.

Wressle Planning Inquiry

The Wressle planning inquiry is due to start on November 5th. Critically, the North Lincs council have withdrawn all evidence. The expectation is for a 3-4 day meeting maximum, as all major objections to planning have been dropped. . Is there any risk? According to DB, Egdon have done everything they can and are fully prepared and have met all statutory regulations as highlighted by the previous Planning Inspector.

Biscathorpe Prospect

The historical seismic data for the Biscathorpe prospect was unreliable in hindsight. Initial results from the well drilled in February 2019 were very disappointing as it did not intercept the main prospect. New analysis of the seismics is being completed by a French company and will allow optimal drilling and should inform the JV of the optimal drilling position..Albeit, incoming new results indicate that the well was in fact more interesting than originally believed, with oil being recovered from chip samples, showing the presence of a significant oil column. DB and UJO are very optimistic.

The British Geological Survey (BGS) estimated the East Midlands and surrounding area could hold around 7 billion barrels of oil and less than 10 percent has been recovered to date. Leaving massive upside for future drills.

Expect news in the “near term”. DB believes the area could be very exciting. Watch this space!


“The RBD documents for the placing, should give UJO investors all the information they need to know. The volumetric analysis is being finalised.”

Contrarian Investor’s estimate is Q1 for West Newton CPR and start of WN-B, hopefully a horizontal, around the same time or just after.

The partners in West Newton are taking their time to get things right and the placing by RBD puts everything in place. The news from Wressle planning in early November should be positive and watch this space for Biscathorpe and Keddington.

I am certainly not selling UJO or RBD after this morning’s meeting! As DB says there are risks “don’t put your entire pension in” but things are looking good. The partners in WN, Egdon and Rathlin are strong and board of UJO is top notch.

As I said before, Contrarian Investor is 100 percent independent of UJO and DB. Contrarian owns shares in both.

Timings Summary (CI estimates)

West Newton

Extended Well Test November 2019

CPR Jan/Feb 2020

WN B Spud March 2020 (could be earlier or later)


Planing inquiry November 5th - November 9th 2019


New seismic assesmment October - November 2019

All systems go for West Newton and Union Jack Oil as Reabold gets £24 million placing done

Reabold resources logo

Reabold, RBD, has announced the successful completion of the Placing announced on 8 October 2019.

A total of 2,666,666,666 new Ordinary Shares have been conditionally placed with new and existing institutional investors by Stifel, at a price of 0.9 pence per new Ordinary Share, raising gross proceeds of £24 million.

The Placing Price represents an 12.2 per cent. discount to the mid-market closing price of 1.025 pence on the 8 October 2019, being the last practicable closing price prior to the announcement of the Placing.

Application will be made to the London Stock Exchange for the Placing Shares to be admitted to trading on AIM. It is currently expected that Admission will become effective and that dealings in the Placing Shares will commence on AIM, at 8.00 a.m. on 29 October 2019.

With funds now in place, the development of West Newton will be guaranteed. Surely UJO shares due a bounce on this excellent news for the WN consortium? 1.2p is too low with enough cash, £2.6 million to fund B well at West Newton. Placing will come, hopefully after CPR Q1 2020?

News flow West Newton

  1. A restart of EWT October/November 2019

  2. Completion of Extended Well Test End 2019

  3. CPR for West Newton Basin End 2019/Early 2020

  4. WN B well end Q1 2020/early Q2 2020

Reabold Resources gets placing going at around 10 percent discount to raise £24 million - news tomorrow

RBD share price october 8tjh 2019

West Newton in Yorkshire - About Rathlin, Reabold and Union Jack oil

Rathlin Energy drilled the initial well at West Newton in 2014, but struggled to get enough money to drill a second due to low energy prices. Reabold, was formed at the beginning of 2018, invested £3 million in Rathlin, giving it a 36 percent stake in the company and a 25 percent share of the gas project. Union Jack Oil, has a 16.7 percent interest in the project at West Newton.

On August 29th 2019, the partners in the West Newton project announced that they believed that it is a “significant oil and gas discovery”, and now deemed more significant than simply a “pure gas discovery” as was previously thought.

A CPR (Competent Persons Report) is being produced by the companies to provide details on the oil in place, gas in place and recoverable volumes. This is expected at the end of 2019 or early 2020. All being well this should raise the NPV10 calculations.

The Extended Well Test (EWT), running at the time, was paused to allow the test equipment to be reconfigured to design and implement a revised production test and validate the identified oil column.

Implications of placing

Investors will know tomorrow whether the £24 million placing has gone to plan. All seems positive and the discount to the prevailing share price is not outrageous showing decent investor demand for the story.

Once the £24 m is banked at the end of the month following the General meeting. RBD will buy a stake in Rathlin giving it a 75% ownership of the company and hence a very strong stake in the Yorkshire West Newton A and B project.

The EWT this year, CPR end of this year or early next and drilling of WN-B in late Q1 2020 will be critical to further the Net Asset Value of the project.

It has been a rough time for the UJO share price, despite a 17% share in West Newton, with Chris Williams @chrisoil selling down to below a 3% stake from 7%. They stand at 0.2p right now. But good news for UJO coming tomorrow when the placing conclusion is confirmed and all set for West Newton. Hopefully, Chrisoil will cease his selling, which has been at a big profit for him. More than doubling his money.

Its got to be good value for UJO at 0.2p given this news!

The Proposed Placing to Raise £24 million for Reabold Resources

At 4.45pm today, further to its announcement on 7 October 2019, Reabold Resources (RBD), announced a proposed Placing of 2,666,666,666 new ordinary shares ( at a price of 0.9 pence per Placing Share, raising £24 million, compared with the closing price today of 1.01p.

The Placing is being conducted through an accelerated Bookbuild which will be launched immediately following the 4.45ppm RNS and made available to eligible institutional investors.

The Bookbuild is expected to close no later than 8 a.m. on 9 October 2019, but Stifel and the Company reserve the right to close the Bookbuild earlier or later, without further notice. Stifel Nicolaus Europe Limited is acting as bookrunner for the Placing.

Previous RNS relating to RNS

On October 4th, RBD Reabold said: "The majority of the proceeds intended to be utilised to meaningfully increase Reabold's interest in Rathlin Energy UK Ltd, to fund and accelerate the permitted, two well work programme at the West Newton project, and to exercise its existing option in Danube Petroleum Ltd, providing the required funding for the IM-2 well."

On October 7th, Reabold Agreements confirmed that it was planning to increase its interest in Rathlin Energy (UK) Limitedto up to 74.99 per cent., through a £16 million cash investment and, potentially, a £7 million equity swap with existing Rathlin shareholders.

rathlin logo

Rathlin Subscription Agreement

 RBD has entered into a binding subscription agreement with Rathlin, conditional on completion of the Placing, to make a cash investment of £16 million in Rathlin, at a valuation of £2.75 per ordinary share in the capital of Rathlin.

 Proposed Equity Swap and Lock In Agreement

The Company has verbally agreed, with certain shareholders of Rathlin, to complete a swap of their Rathlin Shares for new Ordinary Shares at the Placing Price at the same value at which Reabold is subscribing for new Rathlin Shares pursuant to the Rathlin Subscription Agreement, up to a maximum value of £7 million. 

Discussions and terms are at an advanced stage and the Company is targeting finalising the Proposed Equity Swap ahead of a General Meeting to be held on October 28 2019, with the intention of concluding the Proposed Equity Swap, with admission of the Swap Shares to trading on AIM expected to occur concurrently with the admission of the Placing Shares, which is anticipated for the 29 October 2019.  

The Company requires that as a condition to completing the Proposed Equity Swap and under the terms of the offer, that the Swap Shares be subject to a three month lock-up period and a further three month orderly market agreement. Further announcements regarding the Proposed Equity Swap, including the level of uptake by Rathlin shareholders, will be made as and when appropriate.

Controversy as Chris williams aka @chrisoil sells down UJO stake

chrisoil twitter

A TR-1, Standard form for notification of major holdings at 3.55pm yesterday, from Union Jack Oil (UJO), caught investors attention with Chris Willams (also known as @chrioil on Twitter) reducing his holding in the company.

Chrisoil share sale October 7 TR1

He sold down his stake below 3% as announced yesterday but has been selling for some time,. On August 30th, a TR-1 announced he had gone from 7 to 4%. Williams had his maximum stake during May 2019 (16th May TR-1).

With the price action over the last few days it has not been surprising as there has clearly been a larger seller in the market suppressing the price. For Chris, a nice little earner as the share price was around 0.1p, pre-West Newton drilling results, and has doubled to around 0.2p. With 12.1 billion shares in UJO right now, a reduction for 7 to 3 % at those price points would be a profit of :

Investment May 2019 12.1 billion x 7% x 0.1p = £847,000

Proceeds of Sale October 2019 12.1 billion x (7-3) 4% x 0.22 = £1,065,466

Profit = £218,466

Now bad for 5 months work!

chris oil

What has bothered UJO investors is not that Chris had made money, no problem, as a profit is not a profit until you’ve banked it, but the fact that according to reports he was tweeting positive comments very recently. Interestingly, I see his recent UJO tweets have disappeared from his account which is a little disingenuous, but I would be fascinated to see if anyone has screenshots. For the sake of transparency, it would be nice for @Chrisoil to reinstate those Tweets and set the record straight, both for his own integrity and for the benefit of shareholders in UJO. But let’s see. I have nothing personally against Chris, as we have both been Rockhopper followers for many years and have been in touch.

A similar thing happened with Stephen Beecham on Greatland Gold (GGP) who was and is a major investor in the company and was posting on the LSE board what a great investment GGP was, whilst at the same time selling down a major part of his holding. Naughty!

UJO share price October 7 2019

UJO shares were down after the TR-1 RNS into the close with a near 7% decline to finish the day at 0.22p, despite the excellent news from Reabold Resources (RBD) in relation to their placing document and the West Newton prospect. Today RBD will announced the results of its £30 million placing, 2/3 to be spent on West Newton. Given the action on RBD share price it is looking like the placing shares will get away OK.

The TR-1 may have been issued yesterday but Chris has been selling all last week and the week before with a lot of shares in the market at 0.2-0.25p. The rumours of Reabold from Broker Man Daniel etc. were an opportunity for him to take his stake down as liquidity was improved on the Reabold rumours and then subsequent announcement.

I for one increased my holding in UJO near the close by a few million as the RBD announcement on the placing is due today and if it completes as expected, West Newton will have been funded. Unlike some I did not believe a CPR was imminent for WN and the RBD placing doc confirmed that this was the case. A CPR for a large size field takes time and expect one towards the end of 2019 or early 2020.

On the subject of UJO and financing. According to the latest info from the company, it has around £2.8 million in cash (as of September 20), no debt and is fully funded for the next well at West Newton, due to commence drilling end Q1-start Q2 2020. Given this, I don’t expect a placing just yet but one will be needed to contribute to Wressle and West Newton field development in 2020. The planning meeting for Wressle with North Lincs council commences Nov 5th and I fully expect it to pass this time given the Planning Officer’s comments to the company and operator Egdon Resources.

Contrarian now has quite a few million shares around 0.2-0.22p because of the RBD news, prospects for West Newton, Biscathorpe and Wressle. At 0.2p I don’t blame Chrisoil for cashing out a big stake in the company for a sizeable profit. But the weakness in the share price caused by his sales is a good opportunity to buy in at a reasonable price (52 week high 0.38p following WN oil/gas result). I am seeing David Bramhill on Friday for a chat. Will keep readers informed.

See news flow post:

For the info of UJO holders, remember that major private investors will sell down stakes and have no loyalty. I’s about making money at the end of the day and those with £££ will deploy their money where they see fit to maximise returns. Will Chrisoil sell down his entire stake in UJO, who knows, but if the overhang of his selling is cleared it’ s good news not bad. He didn’t sell from 5% to under 3% yesterday, only the TR-1 came out that day. Trust no one…and make your own decisions...

Reabold Resources placing document details - a good read for Union Jack Oil Shareholders

Reabold resources logo

West Newton

  • A-2 well resulted in a significant discovery in the Kirkham Abbey formation; gross oil column of c.45m and gross gas column of c.20m

  • Well logs and 28m core cut from Kirkham Abbey indicate encouraging porosity and natural fracturing within the oil zone

  • Extended Well Test ("EWT") paused to optimise evaluation of oil column. Revised EWT planned for Q4‘19

  • Oil discovery materially enhances economics; Kirkham Abbey pre-drill NPV1 of $247m ($99m - $124m net2 ) based on gas. Oil coupled with better than anticipated reservoir quality anticipated to result in value uplift. CPR 1 assumes NPV/bbl of $11.50 for Cadeby oil target

  • Revised CPR post EWT to reassess volumetrics given oil discovery and better than expected reservoir parameters

  • Two further wells permitted at West Newton B site, optimally located to define the deeper Cadeby oil play. Next well focused on

  • Cadeby reef flank: 24% CoS1 or NPV 1 $850m ($340m - $425m net 2 ), as well as intersecting the Kirkham Abbey

  • Cadeby intersected in A-2 well and oil bearing; reservoir quality (porosity), as expected, was poor. Seismic and geological model indicate significantly better reservoir quality at West Newton B location

Reabold Resources West Newton 1
Reabold West Newton 2
Reabold resources west newton 3
Reabold resources west newton 4
reabold 5.PNG

Link to September placing document Reabold Resources