Union Jack Oil PLC Loan Facility Provided to Europa Oil & Gas (8394Y)
September 09 2022 - 2:00AM
UK Regulatory
TIDMUJO
RNS Number : 8394Y
Union Jack Oil PLC
09 September 2022
This announcement contains inside information for the purposes
of Article 7 of the Market Abuse Regulation (EU) 596/2014 as it
forms part of UK domestic law by virtue of the European Union
(Withdrawal) Act 2018 ("MAR"), and is disclosed in accordance with
the Company's obligations under Article 17 of MAR.
9 September 2022
Union Jack Oil plc
("Union Jack" or the "Company")
Loan Facility Provided to Europa Oil & Gas (Holdings)
plc
Union Jack Oil plc (AIM: UJO) a UK focused onshore hydrocarbon
production, development and exploration company is pleased to
announce that a loan facility and charge agreements have been
executed between Union Jack and Europa Oil & Gas (Holdings) plc
("Europa" or the "Borrower") for Union Jack to provide Europa with
a loan for GBP1,000,000 ("Loan Facility" or "Loan Facility and
Charge Agreements").
The key terms of the Loan Facility and Charge Agreements are set
out below:
-- 18 month term ("Term")
-- Principal of GBP1,000,000 ("Principal") that is repayable at
end of the Term or in part or in full at any earlier time at the
discretion of the Borrower
-- Interest will accrue daily on the amount of Principal
outstanding at an interest rate of 11% per annum and is payable
quarterly in arrears
-- The Loan Facility is secured against an unencumbered 10%
interest in the Borrower's UK onshore licence interest over PEDL180
and PEDL182 including the Wressle oilfield and associated
infrastructure ("Security")
The Board believes that the Loan Facility provides an attractive
commercial return to Union Jack on cash funds deployed with
appropriate Security.
Executive Chairman of Union Jack, David Bramhill commented:
"Revenues from Wressle have financially transformed the cash flow
and our balance sheet in the past 12 months. Union Jack is now on a
material growth trajectory which augurs well for the future of the
Company and its shareholders.
"Our working capital position remains robust and continues to
grow with cash balances, receivables and liquid investments
standing at approximately GBP10,500,000 as at 6 September 2022,
with steady improvement expected by the end of this year, given
current oil prices.
"This strong position, combined with being debt free, allows us
to confirm we are covered for G&A, OPEX and CAPEX costs that
are contracted or planned for at least the next 12 months,
including the cost of any development and drilling activities that
are currently under consideration during 2022/2023 at the Wressle,
West Newton, Keddington and Biscathorpe projects.
"The mandate of the Board is to ensure that the Company's
capital and investments generate an attractive commercial return
for shareholders. That also applies to deploying any surplus cash
balances currently on deposit to ensure they work as hard as
possible and attract optimum interest rates to generate additional
revenues."
For further information, please contact
Union Jack Oil plc info@unionjackoil.com
David Bramhill
SP Angel Corporate Finance LLP +44 (0)20 3470 0470
Nominated Adviser and Joint Broker
Matthew Johnson
Richard Hail
Caroline Rowe
Shore Capital +44 (0)20 7408 4090
Joint Broker
Toby Gibbs
Iain Sexton
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END
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