Union Jack has also entered a memorandum of understanding with Humber Oil & Gas Ltd, to form a basis for an ongoing commercial partnership where both companies will co-invest in
As part of this agreement, Union Jack and Humber will acquire a 6.0% stake each in Egdon Resources PLC's 52% interest in PEDL253, by paying their pro-rata shares of the Biscathorpe-2 well cost as well as an additional
In addition, Union Jack has raised
Shares in Union Jack Oil were down 18% at
Proceeds will go towards funding Union Jack's expected drilling obligations for 2018, review new opportunities in collaboration of its agreement with Humber, and working capital purposes.
SP Angel Corporate Finance LLP was the sole broker for the placing.
Two directors took part in the placing.
Executive Director Joseph O'Farrell will subscribe for 58.8 million shares for a total of
Executive Chairman David Bramhill will purchase 11.8 million shares for
"We are grateful for the continuing support of our existing shareholders and new investors who have participated in this oversubscribed fundraising. The funds raised will allow us to acquire an additional 10% interest in PEDL253, on attractive farm-in terms, and progress the drilling of the potentially high-impact Biscathorpe-2 conventional exploration well. The fundraising also enables us to progress existing opportunities within the company's portfolio and evaluate further acquisition opportunities, in partnership with Humber," Bramhill said.
Union Jack Oil now has 5.80 billion shares issued overall.