Union Jack Oil PLC (AIM:UJO, OTCQB:UJOGF) has raised £2 million before expenses through a placing and subscription priced at 5p per share.
Proceeds will be used to support a three-well drilling programme in Oklahoma, targeting the “Sark”, “Crossroads” and “Wolverine-1” wells.
This campaign is estimated to unlock a potential $39 million of value (net present value).
The ‘high-impact’ drilling has already begun.
"The board would like to thank those new investors and shareholders who have participated in the fundraise that will help deliver further growth for the company,” executive chair David Bramhill said in a statement.
"In just over 15 months, the company, which remains debt-free, has drilled four consecutive discoveries and compiled a portfolio of what we believe to be dynamic projects, forming the foundations of a valuable commercial business in the USA, complementing our profitable revenues from Wressle and Keddington in the UK.”
Bramhill added: "The recent success at Moccasin has been a major catalyst and Union Jack now has a fully-funded drilling and development programme in Oklahoma.”
Each new share issued in the placing will carry one warrant, exercisable at 8p, for two years.