WTI (Oct) $100.30 -$1.61, Brent (Nov) $103.87 -95c, Diff -$3.57 +66c.

USNG (Oct) $2.91 +1c, UKNG (Oct) 193.5p -0.4p, TTF (Oct) €78.01 +€0.25.

Oil price

Oil is down again today, indeed WTI is off $5.20 and Brent is just $3.74 easier, these moves are giving back the +$8.82 and +$7.59 from last week. This is despite the further attacks by the Houthis on Saudi Arabia, indeed on Riyadh itself, as well as Aramco operations at Yanbu, pragmatists are hoping again for a solution to the war. To be exact they are pinning expectations on this week’s UN General Assembly in New York. 

The UN is obviously a toothless talking shop but in the grabbing at short straws stakes there are people generating interest in potential diplomatic solutions especially as Iran are sending a delegation and are ‘ready to meet’ US diplomats. 

China will feature heavily in this week’s activities in New York and across the USA. Firstly it is thought that they have read the riot act to Iran, apparently telling them to rein back the Houthis before they have to take action. 

Secondly President Trump is meeting Chinese president Xi Jinping on Thursday, whilst this invitation has been in negotiation for some months the actualité  is that the meeting has been the subject of discussion recently and President Xi has only recently confirmed his attendance. 

In terms of other factors influencing the recent six dollar fall in crude prices, the Gulf monitoring agencies have been reporting an increase in oil getting to the market, mainly Saudi crude from the channels I have reported recently plus somewhat surprisingly a few LNG cargoes as well.

Finally, the Baker Hughes rig count for last week showed yet another rise, overall across the US units ere up by 4 to 595 and in oil it was an increase of 2 to 452. Year on year they were up 53 and 34 rigs respectively.

Reabold Resources

The board of Reabold notes the publication on 11 September 2026 of the circular containing, inter alia, the views of the recently appointed Union Jack board with regard to the all-share offer for Union Jack by Reabold.

The Reabold Board believes that the Circular contains a number of misleading, selective and highly speculative statements regarding Reabold, the Offer and the West Newton project. Reabold believes the rejection by the New Board of the Offer to be self-serving for and not in the best interests of Union Jack as a whole or for Union Jack Shareholders.

Reabold hereby wishes to set out its view with regard to assertions in the Circular.

Reabold remains strongly of the view that the Offer represents the most credible route to value creation for Union Jack Shareholders in the circumstances and that its terms are fair and reasonable for Union Jack Shareholders and Reabold Shareholders alike. 

*Accordingly, Reabold declare that the Offer is final and will not be increased, except that it reserves the right to revise the financial terms of the Offer if: (i) there is an announcement of a possible offer or a firm intention to make an offer for Union Jack by any third party; or (ii) the Panel otherwise provides its consent (which will only be provided in wholly exceptional circumstances). This is a statement to which Rule 32.2 of the Takeover Code applies.

Capitalised words and expressions in this announcement shall, unless otherwise defined, have the meaning given in the offer document containing the full terms and conditions of the Offer and the procedures for acceptance of the Offer published on 29 July 2026 (the “Offer Document”).

The Offer continues to represent the most credible route to value creation for Union Jack Shareholders

The Offer provides Union Jack Shareholders with an opportunity to participate in a larger, better capitalised and more diversified energy company with exposure to a broader portfolio of production, appraisal and development assets.

The New Board’s rejection of the Offer appears to be based principally on short term share price movements, highly subjective views regarding West Newton and a speculative belief that future funding can be raised on attractive terms. Reabold believes that shareholders should assess the transaction on strategic merit, asset quality, funding capability and long-term value creation.

The New Board’s valuation analysis is selective and misleading

The Circular places substantial emphasis on the fall in Reabold’s share price since the commencement of the offer period.

As shareholders will appreciate, the Offer is an all-share offer under which both sets of shareholders will participate in the future performance of the Enlarged Group. Short-term share price movements are an inherent feature of any share-for-share transaction and should not be viewed in isolation.

The New Board does not address:

  • the strategic rationale for combining the two companies;
  • the potential benefits of consolidating ownership interests in West Newton and other assets;
  • the enhanced funding capability of the Enlarged Group;
  • the corporate cost savings available through combination; or
  • the increased scale and market relevance of the Enlarged Group.

Nor does the Circular explain how Union Jack, with limited cash resources and ongoing funding requirements, can deliver superior value on a standalone basis without materially diluting Union Jack Shareholders.

Reabold notes, in particular, that the resolutions proposed at the most recent Annual General Meeting of Union Jack both to (a) disapply pre-emption rights and enable an equity issue to be conducted without further shareholder approval and (b) approve a sub-division of Union Jack Shares to lower the nominal value below the current 5 pence, were rejected. Absent convening a further General Meeting to approve these measures, incurring both time and cost, the New Board will be unable to effect a capital raise. 

Reabold strongly rejects the suggestion that West Newton lacks strategic merit

The New Board seeks to characterise West Newton as a risk that Union Jack Shareholders should avoid.

Reabold considers this position inconsistent with Union Jack’s longstanding investment in West Newton and the repeated statements made by the former Union Jack board regarding the significance of the project. 

West Newton remains one of the largest onshore conventional gas and condensate discoveries in the United Kingdom. Significant technical work has been undertaken to understand historic well performance and to design the forthcoming WNA-2 recompletion programme. 

The New Board’s comments regarding reservoir performance, permitting matters and future development activity are largely speculative. The forthcoming programme is specifically intended to further evaluate the productivity and commercial potential of the reservoir.

Importantly, the New Board provides no independent technical report to support its assertions regarding the project’s prospects.

Reabold’s financial position is materially stronger than portrayed in the Circular

The Circular seeks to create concern regarding Reabold’s funding position.

Reabold notes that:

  • it successfully completed a £4.16 million fundraising in April 2026;
  • it has demonstrated continuing access to capital markets;
  • it remains funded for its current work programme; and
  • it retains flexibility to pursue a range of funding alternatives available to AIM-listed companies.

The reference in Reabold’s FY2025 accounts to a material uncertainty relating to going concern is a disclosure commonly seen in pre-revenue development-stage businesses and reflects prudent accounting practice rather than any immediate solvency concern.

In contrast, the New Board acknowledges that Union Jack currently holds only approximately £0.8 million of cash and may require additional funding in order to meet future commitments, including those relating to West Newton.

The Reabold Board believes shareholders should carefully compare the relative funding positions of the two companies before accepting the New Board’s conclusions.

Assertions regarding possible future fundraisings are entirely speculative 

The New Board repeatedly refers to future dilution at Reabold.

Such statements are speculative and cannot be presented as fact. 

Equally, the New Board’s assertion that it can raise all required future funding for Union Jack on attractive terms remains wholly untested. Shareholders have not been provided with any evidence of committed funding arrangements, cornerstone investors or financing proposals.

Acceptance levels should not be viewed as a referendum on the merits of the Offer 

The New Board points to current acceptance levels and certain irrevocable undertakings and letters of intent.

Reabold notes that:

  • the offer remains open;
  • shareholders continue to have ample time to assess the Offer; and
  • acceptance levels in UK takeovers frequently build later in the offer timetable.

The Reabold Board remains confident that shareholders will assess the Offer based on its merits rather than the New Board’s highly subjective narrative.

Governance concerns raised against the former Union Jack board are irrelevant to shareholders’ assessment of the Offer

A substantial portion of the Circular is devoted to criticism of the former Union Jack board.

Whether shareholders agreed or disagreed with decisions taken by the former board does not alter the strategic rationale for the Offer or the value available from combining the businesses.

The relevant question for shareholders remains whether they are better served owning shares in a standalone Union Jack with limited scale and funding resources or owning shares in a larger, diversified and better-capitalised Enlarged Group.

Reabold continues to believe the Offer is compelling

The Reabold Board continues to believe that:

  • the Offer provides Union Jack Shareholders with an attractive opportunity to participate in a larger diversified energy business;
  • the Enlarged Group would benefit from improved scale, enhanced access to capital and reduced corporate overheads;
  • the ownership interests of the two companies are strategically complementary; and
  • the transaction represents the most credible route to unlocking value from the combined portfolio.

The Reabold Board therefore continues to encourage that Union Jack Shareholders ACCEPT the Offer.

Action to be taken by Union Jack Shareholders

As announced on 11 September 2026, the Panel Executive published Panel Statement 2026/13 in which it ruled that “Day 60” of the Reabold Offer (being the latest date by which the conditions to the offer must be satisfied or waived) would be re-set to 2 October 2026.

The Offer will therefore now remain open for acceptances until 1.00 p.m. (London time) on 2 October 2026, which is the Unconditional Date. The Unconditional Date may be extended in accordance with the Code, as further described in paragraphs 2.2 and 2.4 of Section C of Part III of the Offer Document.

Union Jack Shareholders are encouraged to accept the Offer as soon as possible. Acceptance of the Offer can help ensure that Union Jack’s assets become part of a better-capitalised and more competitive business. The Reabold Board therefore urges all Union Jack Shareholders to read the Offer Document carefully and accept the Offer as soon as possible.

To accept the Offer in respect of Union Jack Shares held in certificated form (that is, not in CREST), you must complete, sign and return the Form of Acceptance accompanying the Offer Document (together with the relevant share certificate(s) and/or other document(s) of title) as soon as possible and in any event so as to be received no later than 1.00 pm (London time) on 2 October 2026 or, if earlier, the Unconditional Date.

To accept the Offer in respect of uncertificated Union Jack Shares (that is, in CREST), you must follow the procedure for Electronic Acceptance through CREST so that the TTE instruction settles as soon as possible and, in any event, so that the transfer to escrow settles no later than 1.00 pm (London time) on 2 October 2026 or, if earlier, the Unconditional Date. Full details of the procedures for acceptance of the Offer are set out in paragraph 17 of Part 1 of the Offer Document and as further described in the Form of Acceptance.

The Offer is subject to the full terms and conditions set out in the Offer Document and the Form of Acceptance.

This is a detailed review of the recent UJO circular and makes a number of cogent points for their shareholders to assess. The UJO rejection document appears to me to suggest that a raise is necessary but somewhat at odds with the recent meeting in which UJO shareholders voted against such a move.

The shareholders of Union Jack now have all the necessary data and documentation to make their decision and no one else can make it for them nor influence them, the ball is firmly in their court. The Reabold offer is final and won’t be increased, the 2nd of October deadline day will be an interesting one…

Borders & Southern Petroleum

Borders has announced its unaudited half year financial statements for the six months to 30 June 2026. The accounts contained within this report represent the consolidation of Borders & Southern Petroleum plc and its subsidiary, Borders & Southern Falkland Islands Limited.

Highlights

  • Company continues to engage with multiple third parties in the farm out process with significant progress being made
  • Operating loss for the period was $726,000 (30 June 2025: $441,000)
  • Cash balance on 30 June 2026 was $1.02 million (31 December 2025:  $2.56 million

    Chief Executive’s Statement 

    Borders & Southern has a major world class undeveloped liquids rich resource, being 462 MM bbls (P50) of recoverable liquid hydrocarbons with huge potential exploration upside. Our number one priority remains bringing in the right partner with the technical knowledge and financial capacity to develop the Darwin project. During the reporting period this results RNS covers, the company has been very active in marketing the licences and negotiating with potential farm-in partners. As we reported at the end of August, we are engaged with multiple third parties,  significant progress has been made and look forward to reporting a successful conclusion of these negotiations.

    In the light of the recent geo-political tensions between Argentina, The Falkland Islands and the UK government, we were delighted to receive a letter of support from The Foreign Office. 

    “The United Kingdom Government fully supports the right of the Falkland Islanders to exploit their natural resources, including hydrocarbons, for their own economic benefit. This is an integral part of their right of self-determination. All hydrocarbon activities on the continental shelf of the Falkland Islands are regulated by Falkland Islands Legislation, in strict accordance with the United Nations Convention on the Law of the Sea (UNCLOS).”

    It is to be noted that our licences were lawfully granted by the Falkland Islands Government (FIG), with full and ongoing support from the UK Government. The Company has a close working relationship with FIG and we have been guided to expect to see the licence extensions signed before year end.

    We remain extremely optimistic about the outlook for our company and look forward to updating the market in due course.

Stand back, there’s nothing to see here. At Borders, with the results of limited consequence and the company having no update to the very positive news about the farm-out process delivered only last month, only the political situation has changed.

And few would suggest that the spat will alter much, the company has released a letter from the Foreign office showing their support and of course Navitas is proceeding with business as normal.

I remain highly optimistic about the prospects for B&S, whilst the shares are some 28% off the July peak and 18% down since the political skirmish started around 27th August they in no way reflect the potential upside should a successful farm-out be announced. My target price stays at 50p which assumes finding a partner and on favourable terms, I am happy to stick with this stance.

And finally…

The weekend brought some interesting results from the Prem, the Bees beat Chelsea, Villa won at Spurs and the Seagulls saw off the Gooners, not a good weekend for the London clubs and Spurs are still pointless in Seattle. Elsewhere the Tractor Boys got a draw at the Toffees, the Magpies beat the Tigers, the Sky Blues beat Forest, the Cherries lost to Liverpool, Leeds and the Eagles had a yawning 0-0 draw, the Cottagers nearly beat the Red Devils and the Noisy neighbours won an 8 goal thriller 5-3.

Celtic lost 0-1 to Rangers, twice in a week sandwiched by losing in the Boropa Cup…

The Prem has gone on its early season vacation, or at least some have, the England squad has unsurprisingly already been decimated by withdrawals, they must know what the rest of us do that the tournament is a waste of time and only in existence to make more money for the authorities, btw anyone could name the shirkers…

In the final T20 Sri Lanka again failed to show up, all out for 124 and England made the 126-2 in 9.4 overs. England win the series 3-0 and the three match ODI series starts tomorrow at Chester-le-Street.