UNION JACK OIL PLC: Posting of AIM Admission Document & Corporate Update
22 July 2013
UNION JACK OIL PLC
("Union Jack" or the "Company")
(ISDX GROWTH MARKET: UJOP)
Posting of AIM Admission Document
Cancellation of trading on ISDX, corporate update, proposed fundraising
and proposed Board changes
Further to the announcement of 12 July 2013, the Board is pleased to announce
that the Company has today published and posted to Shareholders its AIM
Admission Document and has made an application for the Company's issued and to
be issued Ordinary Shares to be admitted to trading on the AIM market
("Admission"). The AIM Admission Document is also available on the Company's
The Company is proposing to raise £800,000 (before expenses) through
conditional placing of 320,000,000 Placing Shares at 0.25 pence per new
Ordinary Share (the "Placing"). The Placing is conditional on the approval of
Shareholders at a General Meeting to be held at 10 a.m. at the offices of
Osborne Clarke, 2 Temple Back East, Temple Quay, Bristol BS1 6EG on 29 July
2013 and on Admission, proposed for 30 July 2013, becoming effective.
Cancellation of trading on ISDX will take place simultaneously with Admission.
The net proceeds of the Placing, aggregated with the Company's existing cash
resources as at 1 June 2013, are approximately £1.2 million. The Board
to use the funds to undertake the drilling of the Wressle-1 exploration well
(c. £333,000 net to Union Jack) and Burton on the Wolds-1 exploration well
£200,000 net to Union Jack), settle the costs of Admission and to meet
Company's working capital requirements. The Wressle-1 and Burton on the Wolds-1
exploration wells are expected to be drilled in Q3 2013.
Union Jack currently has interests in four Licences in the United Kingdom:
Biscathorpe (PEDL253), Burton on the Wolds (PEDL201), North Kelsey (PEDL241)
and Wressle (PEDL180). The Placing, with the Company's existing cash resources,
will fund the drilling programmes for the Burton on the Wolds-1 exploration
well and the Wressle-1 exploration well. Further funding will be needed to
enable participation in the drilling programmes for Biscathorpe and North
Kelsey. On 5 July 2013, the Company entered into agreements giving it the
option to withdraw from its commitments arising from its interests in PEDL253
and PEDL241 for a fee of £5,000 for each licence interest. On exercise of
option(s) the Company would cease to be interested in the Licence(s).
Additional assets under option or the subject of a letter of intent
The Company currently has options over certain other assets within the Wessex
Basin, the East Midlands and the Cleveland Basin.
On 13 May 2013, Union Jack entered into the Waddock Cross Option Agreement with
Dorset Exploration Ltd., a wholly owned subsidiary of Egdon Resources plc,
pursuant to which the Company has the option, exercisable until 31 July 2013,
to acquire a 10 per cent. interest in UK onshore Production Licence PL090
(including the Waddock Cross oil field) and the adjoining Licence PEDL237. The
Board now does not intend to exercise its right to acquire an interest in these
Licences under the Waddock Cross Option Agreement.
East Midlands and Cleveland Basin
On 4 March 2013 Union Jack entered into a letter of intent with Egdon Resources
U.K. Limited granting the Company the opportunity to participate in the North
Somercotes (PEDL005R (Remainder)) Licence and the possible acquisition of an
additional 5 per cent. interest in North Kelsey (PEDL241) on the same terms and
conditions as the original acquisition. On 3 June 2013 the Company entered into
an option agreement relating to participation in the Westerdale (PEDL068 (Block
NZ/60a)) Licence. These arrangements expire on 31 July 2013. The Board does not
intend to participate in such Licences pursuant to these arrangements.
Proposed Board Changes
Subject to Admission, William O'Dea will step down as Non-Executive Director
with Raymond Godson being appointed to the Board as Non-Executive Director with
effect from Admission. The Board would like to thank Mr O'Dea for his work to
date and help during the transition phase.
Mr Godson is a chartered accountant with 40 years experience in the provision
of oil and gas related services to energy companies. Mr Godson joined the Rio
Tinto group in 1973 where he spent 16 years rising to become the financial and
commercial director of the oil and gas subsidiary RTZ Oil & Gas Limited. In
1988 he joined Teredo Petroleum PLC ("Teredo") where he became the managing
director in 1992. Following the takeover of Teredo in 1993, he became a full
time accountant in general practice, where the majority of his business has
been oil and gas related.
Unless otherwise defined herein, defined terms used in this announcement have
the meaning given to them in the Company's AIM Admission Document.
David Bramhill, Executive Chairman of Union Jack Oil plc, said:
"Union Jack is a new entrant to the UK hydrocarbon exploration sector and is
concentrating on mature exploration projects, both onshore and offshore UK.
Admission, coupled with the funding secured in connection with Admission, will
provide a platform for us to develop into an established UK onshore company. In
due course we aim to add appropriate offshore projects in the North Sea and
"With a management team with expertise in sourcing projects, raising finance
and leading listed companies we intend to grow and diversify our asset
portfolio to generate value for shareholders. We look forward to the proposed
Admission to trading on AIM on 30 July 2013. Thereafter, with two wells being
drilled in the next few months, we expect to provide the market with regular
news of our progress in delivering on our strategy.
"On behalf of the Board I would like to take this opportunity to thank William
O'Dea for his much valued guidance and support leading up to our proposed
Admission. We wish him all the best for the future."
The Directors of the Company accept responsibility for the content of this
Union Jack Oil plc www.unionjackoil.com
David Bramhill +44 (0) 77871 60682
Peterhouse Corporate Finance Limited
Corporate Adviser (ISDX)
Guy Miller and Mark Anwyl +44 (0) 20 7220 9796
Jon Levinson and Lucy Williams +44 (0) 20 7469 0930
Nominated Adviser (AIM)
Bidhi Bhoma, Edward Mansfield +44 (0) 20 7408 4090
Corporate Broking (AIM)
Jerry Keen +44 (0) 20 7408 4090
Yellow Jersey PR Limited
Dominic Barretto and Anna Legge +44 (0) 776 853 7739
-0- Jul/22/2013 06:00 GMT
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