LONDON, UK: Union Jack Oil plc, a UK-based company that produces, develops and explores onshore hydrocarbons, has announced that it has acquired a 3.22% stake in Beacon Energy plc, a full cycle oil and gas company with a portfolio of onshore German assets.
The deal, which was completed following Beacon’s recent fundraise, gives Union Jack 430 million ordinary shares of no par value in Beacon. Union Jack said that the investment was in line with its strategy to seek growth opportunities in foreign jurisdictions with politically safe regimes, and that it was a good use of capital generated from its flagship asset at Wressle.
Union Jack also said that it had met with Beacon’s management and was familiar with their onshore assets in Germany, which it considered to have impressive scope and upside potential for both the near and mid-term. Union Jack added that it saw a synergy between Beacon’s and its own modus operandi and that it looked forward to the results of Beacon’s value accretive work programme, including the testing of the Schwarzbach-2(2.) well.
David Bramhill, Executive Chairman of Union Jack, commented: “We are very pleased to declare our initial investment in Beacon. We consider the investment to be a good use of capital generated from consistent cash flows principally from our flagship asset at Wressle.
We have met with the management of Beacon and are familiar with their onshore assets in Germany, which we consider hold impressive scope and upside potential for both the near and mid-term.
Without doubt we see a synergy between Beacon’s and Union Jack’s modus operandi and we look forward to the results of what appears to be a very encouraging and value accretive work programme going forward, including the testing of the Schwarzbach-2(2.) well.”