Union Jack Oil plc, an onshore oil and gas exploration company with a focus on drilling, development and investment opportunities in the United Kingdom hydrocarbon sector is pleased to announce that Shore Capital Stockbrokers Limited and Northland Capital Partners Limited, the Company’s joint brokers, have raised £650,000 (before expenses) through a placing of 288,888,889 new ordinary shares in the capital of the Company with new and existing investors at 0.225 pence per share (the “Placing”).
The net proceeds of the Placing will be used to accelerate progress in relation to its investigation of the shale oil and gas opportunities on its existing licence interests and additional onshore UK licences in the forthcoming 14th Onshore Licensing Round, which is expected during 2014. The Board is also exploring entry into two joint venture partnerships in licences, one of which has shale oil and gas potential.
The Existing Ordinary Shares have at times been trading on AIM at a price close to or below their nominal value of 0.25p per share (the mid-market price of the Existing Ordinary Shares as at the close of business on 25 February 2014 was 0.255p). The issue of new shares by a UK company at a price below their nominal value is prohibited by UK company law and accordingly the ability of the Company to raise funds by way of the issue of further equity could be inhibited. Accordingly the Directors are seeking Shareholders' authority to allow the Placing to proceed and to implement the Capital Reorganisation to create a clearer differential between the nominal value of the Existing Ordinary Shares and their market price in order to seek to protect the Company’s ability to make future share issues.
David Bramhill, Executive Chairman, commented:
“There have been significant developments in the dynamics of the onshore unconventional UK oil and gas sector including the recent entry of oil and gas majors taking serious interest in this arena. Union Jack intends to leverage industry interest by quantifying the unconventional prospectivity in its existing licence interests and to acquire further licence interests holding both conventional and unconventional potential.”
For more information about related Opportunities and Key Players visit Shale Gas Projects