Union Jack Oil (LON:UJO) told investors it has raised £800,000 to support the company as it seeks to take advantage of opportunities in the onshore UK oil and gas industry.
The cash was raised through a share placing, with the issue of 470.5mln new shares each priced at 0.17p.
It comes after the company announced that, alongside partners Egdon and Europa, the Wressle oil discovery would be advanced through the field development phase.
Wressle is initially expected to flow in excess of 500 barrels of oil per day, from the first of multiple reservoirs.
David Bramhill, Union Jack chief executive, said: "The placing further strengthens our balance sheet and will allow us to continue to execute our strategy of focusing on acquiring interests in low-cost UK onshore exploration, appraisal, development and production opportunities."