LONDON (Alliance News) - Union Jack Oil PLC Friday said it has raised GBP1.4 million before expenses in a significantly oversubscribed share placing, funds it said will enable it to actively bid for interests in the 14th licensing round for onshore oil and gas licensing.
The UK-based onshore oil and gas exploration company placed 560.3 million new shares at a price of 0.25 pence per share.
Union Jack Oil shares were trading 2.8% lower at 0.272 pence Friday morning.
As well as for working capital and bidding for certain interests on the 14th Onshore UK Licensing Round, Union Jack Oil said the funds also will enable it to examine other conventional and unconventional asset opportunities.
The UK Department of Energy and Climate Change issue licences to companies wishing to explore for oil or gas, including shale gas, which it does from time to time in licensing rounds. The licences however do not permit actual drilling or production operations, which always require planning permission as well. The licences merely allocate the oil and gas resource in a specific area to a particular company.
Union Jack Oil said Executive chairman David Bramhill acquired four million shares in the placing, while Executive Director Joe O'Farrell acquired two million shares.
Shore Capital led the placing, with Northland Capital as joint broker.