Union Jack Oil plc (AIM: UJO), a UK-focused onshore hydrocarbon production, development and exploration company, is pleased to announce that it has raised £2.25 million by way of a placing and subscription of 1,323,529,411 new ordinary shares of 0.025p each (“New Ordinary Shares”) at a price of 0.17 pence per New Ordinary Share (the “Fundraising”).
The Fundraising comprises a placing of 1,199,411,764 New Ordinary Shares (“Placing”) and a subscription of 124,117,647 New Ordinary Shares (“Subscription”). SP Angel Corporate Finance LLP acted as sole broker on the Placing.
The proceeds will be used principally for the planned Q3 2019 extended well test following the successful West Newton A-2 appraisal well and to provide additional working capital.
David Bramhill, Executive Chairman of Union Jack, commented:
“Following the successful result at the West Newton A-2 appraisal well, the Board has raised additional equity capital to progress the previously announced long-term production test, scheduled to commence in Q3 2019.
“The Board is delighted with the result of the oversubscribed Fundraising and, given current testing equity market conditions, would like to thank our existing shareholders for their continued support and welcome new investors to Union Jack.
“Given the successful West Newton A-2 appraisal well result, and our improved financial position resulting from this Fundraising, we keenly await the results of the planned extended well test in Q3 2019 that will be expanded to test the liquid and/or gas intervals evident in the well. If the planned extended well test is successful, West Newton could be transformational for Union Jack and deliver growth in reserves, production and shareholder value.
“The directors are extremely confident about the future prospects for Union Jack and look forward to updating the market on developments at the West Newton production test and its wider portfolio.”
The Placing and Subscription
The Company has raised £2.25 million before expenses by way of a placing and subscription of 1,323,529,411 New Ordinary Shares of 0.025p each at a price of 0.17p per New Ordinary Share. The Fundraising comprises a Placing of 1,199,411,764 New Ordinary Shares and a Subscription of 124,117,647 New Ordinary Shares. SP Angel Corporate Finance LLP acted as sole broker on the Placing.
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