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(Sharecast News) - United Oil announced on Thursday that it has raised 0.8m through a significantly oversubscribed conditional placing and subscription of 444.4 million new shares at 0.18p each, to support its farm-out process in Jamaica.
The AIM-traded firm said the fundraising, which remained subject to shareholder approval at its annual general meeting on 25 July, was arranged through Global Investment Strategy UK, which raised 0.65m via the placing, with a further 0.15m subscribed directly with the company.
Each participant in the fundraising would receive one warrant for every two shares subscribed.
The warrants would be exercisable at 0.28p, and would expire on 30 June 2026.
Proceeds from the raise would be used to support United's ongoing farm-out process for its Walton-Morant licence in Jamaica and provide general working capital.
The licence had been extended to January 2028.
Chief executive Brian Larkin said the strong demand was "a clear vote of confidence in our strategy, asset base, and progress in Jamaica."
"We structured a modest raise to minimise dilution, to give us near term flexibility through a key phase while preserving upside for existing shareholders," he added.
Larkin said momentum was building in the Jamaica farm-out process, with growing interest from high-quality counterparties.
"Our focus remains on securing the right partner to move the Walton-Morant licence forward in a way that creates long-term value," he said.
Describing the licence as a "rare combination" of multi-billion-barrel potential and drill-ready prospects, Larkin highlighted its geological similarities with producing systems in Guyana and Trinidad and said the "string of pearls" play concept offered scalable upside.
Admission of the new shares to trading on AIM was expected on or around 28 July.
Following admission, United's enlarged share capital would total just over 2.5 billion ordinary shares.
At 1223 BST, shares in United Oil & Gas were down 10.5% at 0.18p.
Reporting by Josh White for Sharecast.com.