Union Jack Oil PLC (AIM:UJO) raised £3mln in a share placing as it moves to seize growth opportunities as the Wressle field in Lincolnshire continues to exceeded expectations.
The company, which owns a 40% interest in Wressle, said it will upgrade and expand production facilities which are currently handling around 884 barrels of oil per day ‘on a significantly restricted choke setting, with high wellhead flowing pressure and with zero water cut’.
UJO said it also intends to advance a new gas-to-power revenue stream at the Wressle project facility.
Elsewhere, some funds will be used in the drilling of a planned side-track well at the Biscathorpe site in 2022 - which the company sees as one of the UK's largest onshore un-appraised conventional hydrocarbon targets.
The placing sees Union Jack sell 13.6mln new shares, priced at 22p each. It was arranged by broker SP Angel.
“In light of the excellent performance at Wressle where flow rates in excess of 950 barrels of oil equivalent per day have been achieved, and the potential untapped upside, the board has decided to continue to focus on its core projects at Wressle, West Newton and Biscathorpe while also progressing its other existing production and appraisal projects,” the company said in a statement.