Union Jack Oil plc (LON: UJO), a UK-focused onshore hydrocarbon production, development and exploration company, has announced that it has raised £5 million by way of a placing and subscription of 3,333,333,326 new ordinary shares of 0.025p each at a price of 0.15 pence per New Ordinary Share. The Fundraising comprises a placing of 2,928,999,993 New Ordinary Shares and a subscription of 404,333,333 New Ordinary Shares. SP Angel Corporate Finance LLP acted as sole broker on the Placing.
The proceeds will be deployed into what Union Jack believes are highly accretive projects including the drilling and testing of two further appraisal wells and the acquisition and reprocessing of new seismic data at the Company’s flagship asset at West Newton. Funds will also be used to drill an anticipated side-track well at Biscathorpe and to provide additional working capital.
David Bramhill, Executive Chairman of Union Jack, commented:
“The Board is delighted with the result of this successful fundraising.
“These funds will allow Union Jack to fully engage in the newly proposed appraisal programme of its 16.665% interest in its conventional flagship project, West Newton, contained within PEDL183.
“The placing provides funding to progress the technically and financially compelling West Newton project under a planned two well drilling and testing programme for H1 2020 which we expect will add significantly to the earlier successes seen at the A-1 and A-2 hydrocarbon discoveries.
“We also have in place the funds required to complete a seismic acquisition programme over other structures that have been highlighted over the licence area, that we believe hold significant upside potential over and above the West Newton project. Volumetric data on West Newton recently compiled by the operator, Rathlin Energy, indicates a material onshore discovery which we believe may prove to be of national importance.
“In addition to West Newton, Union Jack, has other material conventional assets in its balanced portfolio at Biscathorpe and Wressle that are expected to see activity over the coming months, either of which could potentially be transformational for the Company.
“The directors are extremely confident about the future prospects for Union Jack and look forward to updating the market on developments at West Newton and our wider portfolio.”
The Placing and Subscription
The Company has raised £5 million before expenses by way of a placing and subscription of 3,333,333,326 New Ordinary Shares of 0.025p each at a price of 0.15p per New Ordinary Share. The Fundraising comprises a Placing of 2,928,999,993 New Ordinary Shares and a Subscription of 404,333,333 New Ordinary Shares. SP Angel Corporate Finance LLP acted as sole broker on the Placing.