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Union Jack Oil raises £5mln for new wells at West Newton

"The board is delighted with the result of this successful fundraising,” said David Bramhill, Union Jack chairman.

Union Jack Oil PLC - Union Jack Oil raises £5mln for new wells at West Newton
The plan is to drill two more wells at West Newton

Union Jack Oil PLC (LON:UJO) has raised £5mln in a share placing as the company seeks to focus attention on its flagship West Newton project.

In the equity fund raise, arranged by broker SP Angel, the company is selling 3.3bn new shares at a price of 0.15p each.

The proceeds are earmarked for West Newton which Union Jack describes as a “highly accretive project”.

Specifically, the company envisages drilling and testing two additional appraisal wells and the acquisition and reprocessing of new seismic data.

READ: West Newton's oil potential confirmed by new analysis

Funds will also be used to drill an anticipated side-track well at Biscathorpe and to provide additional working capital.

"The board is delighted with the result of this successful fundraising,” said David Bramhill, Union Jack chairman.

Bramhill added: “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.”

He noted that the company also has other material conventional assets, such as Biscathorpe and Wressle, that are expected to see activity over the coming months and those activities could prove to be transformational to 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,” Bramhill highlighted.

Quick facts: Union Jack Oil PLC

Price: 0.1675 GBX

AIM:UJO
Market: AIM
Market Cap: £25.86 m
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Union Jack Oil expects to be drilling at West Newton within weeks

Union Jack Oil PLC's (LON:UJO) David Bramhill tells Proactive London's Andrew Scott drilling is due to kick off in the next few weeks at the West Newton project, where an appraisal well will follow up last year’s successful discovery. The plan also includes the combined testing of the new well,...

on 4/8/20

2 min read