Union Jack Oil Raises £3 million to upgrade Wressle producing assets to expand future cashflow

Union Jack Oil

Union Jack Oil plc (LON:UJO), a UK-focused onshore hydrocarbon production, development and exploration company, has announced that it has raised £3 million by way of a placing of 13,636,364 new ordinary shares of 5 pence each at a price of 22 pence per New Ordinary Share.  

S.P. Angel Corporate Finance LLP acted as Financial Adviser and sole broker on the Placing.  

Placing

In light of the excellent performance at Wressle where flow rates in excess of 950 barrels of oil equivalent per day have been achieved, and the potential untapped upside, the Board has decided to continue to focus on its core projects at Wressle, West Newton and Biscathorpe while also progressing its other existing production and appraisal projects.  The Placing will be principally applied to upgrade the Wressle producing assets to expand future cashflow generation and to fund the planned side-track well at Biscathorpe. 

Use of Proceeds 

The Company intends to use the net proceeds of the Placing to:

·    expand the oil production facilities at Wressle that has achieved rates from the Ashover Grit reservoir of 884 barrels of oil per day (“bopd”) on a significantly restricted choke setting, with high wellhead flowing pressure and with zero water cut;

·    progress a gas to power revenue stream at the Wressle project facility;

·    drill the planned side-track well on Biscathorpe in 2022, which the Company believes to be one of the UK’s largest onshore un-appraised conventional hydrocarbon targets; and

·    for project contingency and general working capital.   

In making its ongoing commitment to fund its core projects, the Board has decided not to pursue the acquisition of a further 25% interest in the Claymore Piper Complex Royalty Units that was previously disclosed in the Interim Results released on 13 September 2021.

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Application for Admission

Completion of the Placing is conditional upon admission of the New Ordinary Shares to trading on AIM.

Application has been made to the London Stock Exchange for the New Ordinary Shares to be admitted to trading on AIM and it is expected that Admission will take place and that trading will commence on or around 8:00 a.m. on 28 September 2021.  The New Ordinary Shares will rank pari passu in all respects with the existing ordinary shares.

Total Voting Rights

Following Admission, the Company’s share capital and total voting rights will comprise 112,715,896 Ordinary Shares.  The Company does not hold any shares in treasury.  Consequently, 112,715,896 is the figure which may be used by shareholders as the denominator for the calculation by which they will determine if they are required to notify their interest in, or a change to their interest in, the Company under the Financial Conduct Authority’s Disclosure and Transparency Rules.

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