Union Jack Oil (UJO)  raised £5 million via a placing on Wednesday to progress drilling and seismic data at West Newton, as well as activities at Biscathorpe.

Union Jack said it would use the funds to progress its “highly accretive projects” by way of drilling and testing of two appraisal wells as well as acquiring and reprocessing new seismic data at West Newton.

Union Jack also told investors it also intends to use the funds to drill a side-track well at Biscathorpe (PEDL253), where it has a 22% interest, as well as provide additional working capital.

David Bramhill, Executive Chairman of Union Jack, commented: "The Board is delighted with the result of this successful fundraising. These funds will allow Union Jack to fully engage in the newly proposed appraisal programme of its 16.665% interest in its conventional flagship project, West Newton, contained within PEDL183.”

3,333,333,326 new ordinary shares were issued at a price of 15p, which are expected to start trading on Friday 29 November.

Shares were trading 5.8% lower on Wednesday morning at 0.163p

Mr. Bramhill said: "The placing provides funding to progress the technically and financially compelling West Newton project under a planned two well drilling and testing programme for H1 2020 which we expect will add significantly to the earlier successes seen at the A-1 and A-2 hydrocarbon discoveries.”

He added: "We also have in place the funds required to complete a seismic acquisition programme over other structures that have been highlighted over the licence area, that we believe hold significant upside potential over and above the West Newton project.”

He also asserted that the volumetric data at West Newton indicates a material onshore discovery which he believed “may prove to be of national importance”.

Mr. Bramhill also said that Union Jack’s Biscathorpe and Wressle assets would see activity over the coming months, both of which “could potentially be transformational for the Company.”

SP Angel Corporate Finance LLP acted as sole broker on the Placing.

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