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LONDON (Alliance News) - Union Jack Oil PLC on Wednesday said it has raised almost GBP2 million ahead of drilling an appraisal well at West Newton.
Union Jack placed 2.33 billion new shares at a price of 0.075 pence each for GBP1.8 million in total. The stock was trading 6.5% lower on Wednesday morning at 0.082p.
The company is now fully-funded for drilling the West Newton-2 appraisal well in east Yorkshire, on the PEDL183 licence. Union Jack will be targeting best estimate contingent resources of 189 billion cubic feet of gas equivalent, or 31.5 million barrels of oil equivalent.
Executive Chair David Bramhill said: "This fundraising will place the company in a strong position to deliver growth in reserves, production and asset value, while adhering to our principles of strict financial and technical discipline and further success at either West Newton or Wressle will offer significant value upside and generate substantial future revenues for Union Jack following their development."