Union Jack Oil raises £1.4m in placing

Union Jack Oil has raised around £1.4m through a placing of new ordinary shares at 0.135p each, which it plans to use to increase its interests in existing licences within the portfolio.

The company is currently fully funded for its existing commitments, which include the drilling of the Biscathorpe-2 and Holmwood-1 conventional exploration wells.

Executive chairman David Bramhill said: "I would like to thank both existing shareholders and new investors for their financial backing in what was a significantly oversubscribed placing. We are greatly encouraged by the tremendous level of support we have received.

"In the near term we look forward to being able to provide the market with details of the potential acquisition of additional interests within the company's existing portfolio. Union Jack remains debt free and the company is fully funded for its current drill programme."

At 0955 GMT, the shares were down 13% to 0.14p.