Union Jack Oil expands portfolio with Beacon Energy stake
In a major development signaling its growth strategy, Union Jack Oil plc (AIM: UJO) announces its investment in Beacon Energy plc (AIM: BCE). The investment represents a strategic addition to Union Jack’s portfolio, with the UK-based company acquiring 3.22% of Beacon’s issued share capital. This comes on the heels of Beacon’s successful recent fundraise. Union Jack Oil is a UK-focused onshore hydrocarbon production, development, and exploration company.
David Bramhill Highlights Investment Strategy and Growth Opportunities
David Bramhill, Executive Chairman of Union Jack Oil, emphasized the alignment of this investment with the company’s overall growth strategy. According to Bramhill, the capital for this investment comes mainly from consistent cash flows from their flagship asset at Wressle. The executive chairman sees this investment in Beacon Energy as not just a use of capital but a growth opportunity in a politically safe jurisdiction.
Synergies and Future Prospects Between Union Jack Oil and Beacon Energy
Union Jack Oil now holds 430,000,000 ordinary shares in Beacon Energy, which is known for its comprehensive oil and gas portfolio in Germany through its wholly-owned subsidiary, Rhein Petroleum GmbH. Union Jack Oil is familiar with Beacon’s onshore assets in Germany and finds them to have impressive scope and upside potential for both the near and mid-term. In Bramhill’s view, there is considerable synergy between Beacon Energy and Union Jack Oil. He further expressed excitement about the promising and value-adding work program going forward, including the testing of the Schwarzbach-2(2.) well.
With this investment, Union Jack Oil not only expands its own portfolio but also positions itself for significant growth in the future. Both companies are looking forward to leveraging their synergies in the oil and gas sector for promising outcomes.