United Oil & Gas Plc (LON:UOG) has raised £2.5mln of new capital to support exploration activities in UK and offshore Jamaica.
It has earmarked £1mln for its share of drilling costs for the Colter exploration well, off England’s south coast and £1.1mln will go to the 3D seismic work that’s being advanced by operator Tullow Oil in Jamaica.
Together with around £1.2mln of existing cash resources, the remainder of the new funds will be used as general working capital, the company said.
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“We are extremely pleased to continue the progress on our portfolio and with this round of funding complete, we will be in a position to meet our development objectives across our asset base in Italy, Jamaica and the United Kingdom,” said Brian Larkin, chief executive.
“Since our establishment, we have built a strong portfolio of assets and developed a work programme, deliverable in the short term, to unlock the potential of those assets.
“Our strategy has always been to deliver value to shareholders by acquiring low-risk, high impact and near-term opportunities in Europe, whilst looking at high-risk, blue-sky opportunities in other regions and we would like to thank our existing and new shareholders for their ongoing support.”
Larkin added: “Beyond our current exciting portfolio, we remain committed to identifying new opportunities.
“We are currently examining a number of potential opportunities to further expand our asset base. These opportunities range from exploration licenses to a portfolio or production assets.”
United is issuing 58.8mln new shares, priced at 4.25p each through the share placing which was arranged by brokers Optiva Securities and S.P. Angel.