Reabold Resources has offered to buy Union Jack Oil, both companies confirmed this morning.

Statements to investors announced that discussions were underway for Reabold to acquire all Union Jack shares. (Reabold statement and Union Jack statement)

At the time of writing, shares in Union Jack were up 20%. Shares in Reabold were down 1.4%.

Union Jack said the Reabold offer was non-binding and had been made in a letter on 1 June 2026.

Union Jack added:

“The Board has evaluated the Proposed Transaction with its advisers and has provided due diligence access to Reabold. Discussions are ongoing and there can be no certainty that any offer will be forthcoming or proceed, nor as to the terms of any such offer.”

Reabold has until 5pm on 13 July 2026 to announce either a firm intention to make an offer for Union Jack or announce that it does not intend to make an offer.

Reabold said:

“Reabold believes that the combination of the two complementary companies would create a group with greater scale, superior access to capital and other compelling operating efficiencies.”

If the deal went through, Reabold would presumably acquire Union Jack’s 40% investment in Wressle in North Lincolnshire, the largest single stake in the oil field.

The deal would also increase Reabold’s interest in the West Newton oil and gas field in East Yorkshire. It already owns 79.8% of Rathlin Energy, the West Newton operator and has a 16.665% interest in the West Newton licence, PEDL183.

Union Jack has a 16.665% interest in West Newton. It also has a 55% stake in Keddington in Lincolnshire and interests in US drilling at five fields in Oklahoma.

Last week, Union Jack announced it had taken a £1m loan from Egdon Resources, the Wressle operator. Union Jack also revealed that a non-executive director, Graham Bull, had resigned. Mr Ball blamed the “detrimental effect attacks on the Board from certain media organisations” had on him and his family.

In annual accounts, published last month (May), Union Jack warned that government policy had made its UK business “increasingly difficult to progress”.

Earlier this month, the US investment firm, Crypto Cousins LLC, increased its interest in Reabold from 5.6% to 14.309%.

• Last week, UK Oil & Gas plc announced it was selling its stake in the Horse Hill field to energy B for £1m.