The more and more I see placing announcements, the more and more I feel my confidence in Union Jack strengthening.
Beacon Energy announced after hours today they were undertaking a placing to raise £2,600,000 which is due to operational issues encountered while drilling the SCHB-2(2.) well.
In fairness to the company, operational issues like this are not uncommon, there was a very similar situation at Wressle some years ago which was ultimately resolved and look at the production now.
Union Jack has a financial investment totalling 430,000,000 ordinary shares in Beacon representing 3.22% of Beacon’s issued share capital following a previous fundraise back in September 2023. This has suffered in value with the clean up problems being experienced but this well still has every chance of being ‘fixed’ with a planned side track, so I wouldn’t be worrying about this investment long term.
Shareholders in Union Jack should remain comfortable that the revenues being received from Wressle and Keddington provide a great level of comfort as the company progress their own drilling operations this year in that the Andrews-1 well has an impressive chance of success as does the West Newton prospect.
Good luck to Beacon Energy!
