David Bramhill, Executive Chairman of Union Jack, commented:
“Following the successful result at the West Newton A-2 appraisal well, the Board has raised additional equity capital to progress the previously announced long-term production test, scheduled to commence in Q3 2019.
“The Board is delighted with the result of the oversubscribed Fundraising and, given current testing equity market conditions, would like to thank our existing shareholders for their continued support and welcome new investors to Union Jack.
“Given the successful West Newton A-2 appraisal well result, and our improved financial position resulting from this Fundraising, we keenly await the results of the planned extended well test in Q3 2019 that will be expanded to test the liquid and/or gas intervals evident in the well. If the planned extended well test is successful, West Newton could be transformational for Union Jack and deliver growth in reserves, production and shareholder value.
“The directors are extremely confident about the future prospects for Union Jack and look forward to updating the market on developments at the West Newton production test and its wider portfolio.”
Union Jack Oil PLC (LON:UJO), a UK-focused onshore hydrocarbon production, development and exploration company, today announced that it has raised £2.25 million by way of a placing and subscription of 1,323,529,411 new ordinary shares of 0.025p each at a price of 0.17 pence per New Ordinary Share. The Fundraising comprises a placing of 1,199,411,764 New Ordinary Shares and a subscription of 124,117,647 New Ordinary Shares. SP Angel Corporate Finance LLP acted as sole broker on the Placing.
The proceeds will be used principally for the planned Q3 2019 extended well test following the successful West Newton A-2 appraisal well and to provide additional working capital.
The Placing and Subscription
The Company has raised £2.25 million before expenses by way of a placing and subscription of 1,323,529,411 New Ordinary Shares of 0.025p each at a price of 0.17p per New Ordinary Share. The Fundraising comprises a Placing of 1,199,411,764 New Ordinary Shares and a Subscription of 124,117,647 New Ordinary Shares. SP Angel Corporate Finance LLP acted as sole broker on the Placing.
Details of the Director Subscriptions
Joseph O’Farrell and Raymond Godson have subscribed for a total of 35,294,117 New Ordinary Shares at a price of 0.17p per share (“Director Subscriptions”). Details of the Director Subscriptions are outlined in the table below.
| Director | Position | New Ordinary Shares being subscribed | Shareholding following Admission | % holding following Admission |
| Joseph O’Farrell | Executive Director | 29,411,764 | 242,399,473 | 2.00% |
| Raymond Godson | Non-Executive Director | 5,882,353 | 48,411,764 | 0.40% |
Application for Admission
Completion of the Fundraising is conditional, inter alia, upon admission of the New Ordinary Shares to trading on AIM (“Admission”).
Application has been made to the London Stock Exchange for the New Ordinary Shares to be admitted to trading on AIM and it is expected that Admission will take place and that trading will commence on or around 8:00 a.m. on 3 July 2019. The New Ordinary Shares will rank pari passuin all respects with the existing ordinary shares.
Total Voting Rights
Following Admission, the Company’s share capital and total voting rights will comprise 12,107,572,999 Ordinary Shares. The Company does not hold any shares in treasury. Consequently, 12,107,572,999 is the figure which may be used by shareholders as the denominator for the calculation by which they will determine if they are required to notify their interest in, or a change to their interest in, the Company under the FCA’s Disclosure and Transparency Rules.
Related Party Transactions
As Joseph O’Farrell and Raymond Godson are related parties to the Company, the Director Subscriptions, are deemed related party transactions for the purposes of Rule 13 the AIM Rules (“Related Party Transactions”).
David Bramhill and Graham Bull, being the independent Directors for the purposes of the Related Party Transactions consider, having consulted with the Company’s nominated adviser, SP Angel Corporate Finance LLP, that the terms and conditions of the Director Subscriptions are fair and reasonable insofar as all shareholders of the Company are concerned.
Competent Person’s Statement
In accordance with the “AIM Rules – Note for Mining and Oil and Gas Companies”, the information contained within the announcement has been reviewed and signed off by Graham Bull, Non-Executive Director, who has over 46 years of international oil and gas industry exploration experience.
