Union Jack Oil (UJO) , the UK-focused onshore oil and gas company raised £2.25 million via a placing of new shares on Friday.
The company said that proceeds will be used principally for its Q3 2019 extended well test after its successful West Newton A-2 appraisal well.
David Bramhill, Executive Chairman of Union Jack, said: "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.”
Directors Joseph O'Farrell and Raymond Godson took part in subscription for new shares.
The company said that the placing was oversubscribed at a price of 0.17p per share with SP Angel Corporate Finance LLP acting as the broker.
Shares in Union Jack Oil were trading higher at 0.18p a share following the news
Mr. Bramhill added: "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.”
He concluded: "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."
Follow News & Updates from Union Jack Oil here: