Union Jack Oil plc (LON:UJO) a UK focused onshore hydrocarbon production, development and exploration company has announced that the Company has acquired a disclosable interest in Beacon Energy plc (LON:BCE).
Beacon is a full cycle oil and gas company with a portfolio of production, development, appraisal and exploration onshore German assets through its wholly owned subsidiary, Rhein Petroleum GmbH.
Union Jack holds 430,000,000 ordinary shares of no par value in Beacon representing 3.22% of Beacon’s issued share capital following completion of the company’s recent fundraise.
David Bramhill, Union Jack Oil Executive Chairman, commented: “In line with our stated strategy to seek growth opportunities in foreign jurisdictions with politically safe regimes, we are very pleased to declare our initial investment in Beacon. We consider the investment to be a good use of capital generated from consistent cash flows principally from our flagship asset at Wressle.
“We have met with the management of Beacon and are familiar with their onshore assets in Germany, which we consider hold impressive scope and upside potential for both the near and mid-term.
“Without doubt we see a synergy between Beacon’s and Union Jack’s modus operandi and we look forward to the results of what appears to be a very encouraging and value accretive work programme going forward, including the testing of the Schwarzbach-2(2.) well.”
