London-listed Union Jack Oil has carried out a share issue aimed at raising £650,000 ($1.1 million) for further investment in its UK shale interests as it also targets new licences.
The Bath-based company said it is now eyeing two possible joint ventures in licences, one of which has shale oil and gas potential, while also targeting additional onshore licence interests in the country’s upcoming 14th licensing round later this year.
intends to leverage industry interest by quantifying the unconventional
prospectivity in its existing licence interests and to acquire further licence
interests holding both conventional and unconventional potential,” said
executive chairman David Bramhill.
Union Jack said it intends to use net proceeds from the offering, priced at 0.225 pence per share that is below the nominal share value of 0.25 pence, to tap shale oil and gas opportunities in its existing licences.
the company stated share issues below the nominal share price are prohibited under
UK company law. Its share price has at times been trading below the nominal price.
will be held next month to seek shareholder approval for the placement to
proceed as well as safeguard the company's right to carry out future equity issues by
creating a “clearer differential” between the nominal value of the shares and
their market price, it stated.
The explorer, which listed on London’s Alternative Investments Market last year, currently holds stakes in four licences in the East Midlands basin.