Reabold reports half year loss as Union Jack bid stalls

Reabold Resources has disclosed a loss of £989,000 for the first half of 2026, a result reported against the backdrop of a stalled acquisition attempt for rival Union Jack Oil. Despite the financial deficit, the company’s joint chief executives characterised the period as one of strong progress, highlighting recent fundraising efforts and upcoming operational milestones at its flagship UK project. The firm stated that it successfully raised a total of £4.3 million during the period, a sum supported by new and existing investors, including a group of US strategic investors. This capital injection is intended to position the company to fund its share of the recompletion works at the West Newton asset.

The West Newton project is a joint venture with operator Rathlin, in which Reabold holds a 79.8 per cent shareholding. Union Jack Oil, the target of Reabold’s takeover bid, also holds an interest in the venture. Reabold claims an overall economic interest of 69.9 per cent in the development opportunity. The onshore hydrocarbon asset, located north of Hull, has seen three discovery wells drilled to date, designated A-1, A-2 and B-1z. Following the successful discovery of hydrocarbons, the company believes West Newton is potentially one of the largest hydrocarbon fields discovered onshore in the United Kingdom. Plans for the asset include utilising the produced gas to power a data centre.

Operational plans require the recompletion of the A-2 well and the conduct of an Extended Well Test by next summer. Reabold reports that this work is well in hand and is expected to be completed before the end of 2026. Rathlin intends to carry out the recompletion and testing in the fourth quarter of 2026, using the net proceeds from the earlier fundraising to cover the shares of both Reabold and Rathlin. The company estimates the gross cost of the recompletion will be approximately £2.5 million, with £2.1 million of that cost allocated to the Reabold group. This expenditure is part of a broader strategy to unlock the full value of the project.

Financially, the company’s position has improved compared to the same period last year, when it reported a loss of £1.48 million. However, the total comprehensive loss attributable to Reabold Resources plc shareholders has increased slightly. In the first half of 2025, this figure stood at £1.435 million, rising by £18,000 to £1.453 million in the current period. Despite these figures, co-CEOs Sachin Oza and Stephen Williams expressed confidence in the company’s trajectory. They stated that they look forward to building on this momentum in the second half of the year as they progress the West Newton project and continue to execute on their strategy across the portfolio.

The financial and operational updates come as Reabold persists in its efforts to secure the acquisition of Union Jack Oil. The business currently owns 6.8 per cent of Union Jack, a stake that falls short of the full takeover it had planned. The original deal fell apart following a change in leadership at Union Jack Oil, with the new board rejecting the proposal. Reabold has stated that the board made misleading statements regarding the offer and its projects. Consequently, the company has been urging Union Jack shareholders to support the takeover attempt. The offer period is set to close at 1 pm on 2 October, providing Reabold with a final window to convince shareholders to back its plans.