Union Jack Oil plc (AIM: UJO), a UK focused onshore conventional hydrocarbon production, development and exploration company, notes recent market speculation relating to a potential fundraising, pursuant to an equity placing with certain existing and new investors.
The Company confirms that it is in the process of taking market soundings from investors in regard to an equity placing of up to £5 million. It is intended that the majority of the proceeds will be used to fund further drilling activity at the Company's flagship asset, West Newton, including one vertical well and one horizontal well, and acquire and reprocess new seismic data at West Newton. A portion of the proceeds may also be allocated to drill a new side-track well at Biscathorpe.
Further announcements will be made in due course.