RE: UJO Financing11 Aug 2020 16:18
In respect of the £1,040,000 deferred consideration element of this transaction, the Union Jack Board has initiated discussions with third-party financing providers to evaluate a range of debt financing funding instruments for payment of this aspect of the Acquisition due on commercial oil production being established. Wressle is an attractive, low-cost, low-risk conventional onshore hydrocarbon project under development with 2P Reserves and considerable 2C Contingent Resources present within the *****tone Flags formation. The Board has been advised that a project of this nature with reserves and cash flow lends itself to off-take financing from production and anticipates that it will have the opportunity to choose from such an instrument and a range of other favourable debt structured finance options without recourse to equity-based financing.