Union Jack Oil (LON: UJO) shares are down Thursday after announcing it has raised £3 million from a placing of 13.6 million new ordinary shares.
The UK-focused onshore hydrocarbon production, development and exploration company priced the shares at 22p each.
Union Jack said the placing will be principally applied to upgrade the Wressle producing assets to expand future cash flow generation and fund the planned side-track well at Biscathorpe.
The company's shares rose over 3% on Tuesday after it revealed a “highly encouraging” update in respect of ongoing operations at the Wressle hydrocarbon development.
In addition, UJO also said that its ongoing commitment to fund core projects means it has decided not to pursue the acquisition of a further 25% interest in the Claymore Piper Complex Royalty Units.
Union Jack Oil shares are currently down 5.31% at 22.75p.
Should you invest in Union Jack Oil shares?
UJO shares are traded on the London stock exchange's AIM market (the alternative investment market), which is the submarket specifically for smaller companies. AIM stocks are attractive to investors as they have tax advantages and smaller companies have the potential to benefit from rapid growth. But are UJO shares the best buy? Our stock market analysts regularly review the market and share their picks for high growth companies