Read and understand why31 Mar 2019 08:24
David Bramhill, Executive Chairman of Union Jack, commented:
"We are grateful for the continuing investor support in the Fundraising that encouragingly was oversubscribed. We remain funded for the drilling of the West Newton-2 appraisal well that is expected to spud in April 2019. Following the drilling of that well, the Fundraising will then allow us to carry out any long-term gas production testing that is necessary, plus progress further technical and initial conceptual commercial studies on a Field Development Plan on this material gas discovery. A completed Field Development Plan will allow the 31.5 million barrels of oil equivalent best estimate contingent resources (gross) identified in West Newton to be converted into reserves, a necessary step prior to then bringing this important onshore gas field into production and generating first gas revenues.
"The Fundraising will also provide sufficient working capital to bring Wressle to first production, subject to it receiving all necessary planning approvals.
"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.
"We look forward to updating the market of developments at West Newton and Wressle, and on the Company's wider portfolio, over the coming months."
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