United Oil & & Gas plc, a London- based oil and gas expedition company, intends to increase ₤ 700,000 – about J$ 140 million – in a share deal to money its procedures, consisting of tasks in Jamaica.
Shareholders will certainly “vote in relation to certain resolutions, including those in connection with the Conditional Fundraising”, at its forthcoming yearly basic conference in January, according to the firm in a declaration.
Earlier in the month, the firm introduced the stop of all its non-core tasks to maintain cash money. This consisted of halting talks with prospective exploration companions offshore Jamaica till 2025. Now, the firm has actually chosen to increase funds from the marketplace as a means to strengthen its procedures.
“This fundraising is a pivotal moment for United as we position the company for exploration-led growth. The funds raised will enable us to fulfill our work programme obligations in Jamaica and strengthen our farmout efforts,” specified United Oil CHIEF EXECUTIVE OFFICER Brian Larkin in his launch.
Earlier in the year, the firm increased ₤ 1.0 million in a share deal mainly to sustain expedition tasks inJamaica Larkin clarified to investors that the 2nd share deal showed the restricted alternatives offered to the firm.
“We fully acknowledge the dilution this fundraising creates, following an earlier raise,” specifiedLarkin “The decision to raise capital at this level was not taken lightly. However, it was necessary to ensure that United remains financially equipped to pursue value-creating opportunities, particularly in Jamaica, where we see significant potential to unlock shareholder returns.”
The Jamaican possession stands for a significant possibility for the firm. The prospective worth of its most appealing storage tank was individually approximated at US$ 23 billion, which can be removed over a period of 25 years. United Oil calls for an examination drill to figure out whether the materials are petroleum or below ground water.
United, detailed on the goal market of the London Stock Exchange, has actually been checking out offshore Jamaica for many years. However, procedures have actually downsized this year following its leave from Egypt as a result of money difficulties.
United Oil has one year staying under its two-year permit expansion that ends in January 2026. The firm holds a permit to check out 22,400 square kilometres offshore along the island’s southerly coastline, called the Walton-Morant area. The firm carried out a collection of 2D and 3D examinations and exposed materials looking like oil, yet even more examination was required.
Two weeks back, United introduced that its chairman, Graham Martin, will certainly tip down in January 2025 for individual factors. The firm is proactively looking for a follower to lead its following development stage.
“We remain focused on preserving our financial position through ongoing cost reductions while ensuring that our focus on Jamaica remains a key priority,” specified United Oil.
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