United Oil & Gas Plc, the London Stock Exchange listed oil and gas exploration and development company, is pleased to announce that it has raised £3 million (gross) via an oversubscribed placing and subscription (the ‘Placing') with existing and new investors of 54,545,454 new ordinary shares of 1p each in the Company (the ‘Placing Shares') at a price of 5.5 pence per Placing Share (‘the Placing Price').
Placees shall also receive a total of 40,909,080 warrants over ordinary shares in the Company (‘Warrants'), on the basis of 3 Warrants, exercisable at 8p per share, for every 4 Placing Shares, rounded down to the nearest Warrant. The Warrants will have a 4-year life and shall be exercisable from the first anniversary of issue. The Warrants will not be listed. The issue of the Shares and the Warrants are subject to shareholder approval, as detailed further below.
The Placing has been supported by certain strategic investors in recognition of the quality and underlying value of United's existing assets and management's ability to use this as a platform from which to further grow the Company and build value.
United has a dual-focused portfolio of low risk, late stage appraisal/development projects in Europe and high-impact exploration plays in the Caribbean, Latin America, and Africa. The Company is evaluating a number of potential projects and the Board believes the new funds will assist in securing one or more of these projects, should the Board believe that the projects represent attractive opportunities for shareholders.
United Oil & Gas Plc CEO, Brian Larkin, said, "We are delighted with the result of this oversubscribed placing. This is further validation of our strategy of building a strong and diverse portfolio of late stage development projects in Europe, and high-impact exploration in the Caribbean.
“Our portfolio already includes a commercial gas discovery onshore Italy that is currently going through the permitting process, an interest in the upcoming well to appraise the Colter discovery in the UK which lies on the same trend as onshore Europe's most prolific oil field, and a 20% interest in the Tullow Oil-operated Walton-Morant licence, offshore Jamaica which holds the high grade 200mmbbl Colibri target. We do not intend to stop here, and these funds will be used to facilitate the expansion of our portfolio, as we look to add to the long pipeline of value driving opportunities which our shareholders are already exposed to. I look forward to providing further updates on our progress in the near future which will reward the support of both new and existing shareholders.”