Union Jack Oil has raised £7 million by way of an oversubscribed placing and subscription of 4,375,000,000 new ordinary shares of 0.025p each at a price of 0.16p per New Ordinary Share. The Fundraising comprises a placing of 4,127,187,500 New Ordinary Shares and a subscription of 247,812,500 New Ordinary Shares. SP Angel Corporate Finance LLP acted as sole broker on the Placing.

David Bramhill, Executive Chairman of Union Jack, commented:
"The Board is delighted with the result of this oversubscribed fundraising and thanks existing shareholders for their ongoing support and welcomes new investors to the share register.

"The Company is already funded for the imminent drilling at West Newton and for the associated Extended Well Test activities and the cost to first oil production at the Wressle development. With the fundraising net proceeds, our cash position increases to approximately £11 million and will assist in funding our next growth phase.  This fund raising will allow us to continue to invest in our conventional onshore flagship projects and invest for growth in our wider licence interests and drill up to four wells in our drill-ready portfolio before the end of 2021.

"We also believe there will be attractive acquisition opportunities available from the ongoing fallout resulting from COVID, energy prices and BREXIT.

"The directors remain extremely confident in respect of the future prospects of Union Jack and look forward to updating the market on the imminent activity at West Newton and Wressle in the coming weeks and months and thereafter on our wider drill-ready portfolio."

Use of Proceeds

The Company is already funded for the imminent drilling at West Newton and for the associated Extended Well Test activities, and the cost to first oil production at the Wressle development that is expected to come onstream in Q4 2020.  The Company intends to continue to invest in its conventional flagship projects and in its wider licence interests and the net proceeds of the Fundraising will be used to:

• pay the deferred cash consideration due on first oil production at the Wressle development on-track in Q4 2020 as a result of past acquisitions that have resulted in the Company holding a 40% licence interest;
• drill a side-track well at the Biscathorpe discovery planned for 2021;
• ongoing investment for growth in the Company's other conventional onshore drill-ready projects including a proposed low-cost, side-track well at the producing Keddington oilfield and a proposed conventional well at North Kelsey;
• the costs to maintain its licence and project obligations across its portfolio; and
• working capital.

The net proceeds of the Fundraising will also allow the Company to take advantage of attractive acquisition opportunities that it believes will become available from the ongoing fallout resulting from COVID, energy prices and BREXIT.

KeyFacts Energy: Union Jack Oil UK country profile