Reabold Resources plc has agreed a £6.14 million takeover of Union Jack Oil plc, which was at risk of losing its main assets.
COMPELLING
Under the agreement, each Union Jack shareholder will receive 0.051 new Reabold share in exchange for every one Union Jack share.
Investment company Reabold said that, following completion, the enlarged group will have a combined market capitalisation of approximately £17.80m.
Union Jack shareholders are expected to own approximately 34.01% of the enlarged group .
The value of the offer represents a premium of 25% to Union Jack’s closing share price of 3.35 pence on 12 June 2026.
Reabold added it would acquire only 75% of the voting rights normally exercisable at a Union Jack general meeting.
“The offer has a compelling strategic rationale, creating a more substantial and better capitalised oil and gas company with complementary assets and aligned objectives,” said Union Jack executive chairman David Bramhill.
“The combination of Union Jack and Reabold will create a strengthened onshore oil and gas company in both the UK and internationally with a balanced portfolio of near-term production, appraisal and high-impact development opportunities in the pursuit of future value creation.
“The board of Union Jack believes that the offer provides the only financing option to prevent this outcome and are therefore of the view that the offer is in the best interests of shareholders.”
OPPORTUNITY
Union Jack holds onshore UK oil and gas licence interests in West Newton (16.665%), Wressle oil (40%), Biscathorpe (45%), Keddington oil in Louth (55%), Louth extension (35%), Fiskerton (20%) and North Kelsey (50%).
The company additionally holds joint venture operations with Reach Oil and gas Company Inc in Oklahoma, USA.
Reabold’s main asset in the West Newton joint venture gas project in East Yorkshire.
The company has a direct 16.665% licence interest and a 79.8% shareholding in operator Rathlin Energy (UK) Ltd, giving it a 69.9% economic interest.
Reabold also holds the Parta licence in Romania, Daybreak Oil and Gas in California, and exposure to the Colle Santo gas project onshore Italy, through an earn-out and a shareholding in Beacon Energy plc.
Chairman Jeremy Edelman added: “We believe the proposed combination with Union Jack represents a compelling opportunity for Reabold shareholders.
“It would create a larger, more diversified and better capitalised company with a strengthened UK onshore oil and gas platform, providing balanced exposure to producing and development assets, improved access to funding, and the potential to deliver long-term shareholder value through increased scale, operational efficiencies, strategic synergies and disciplined capital allocation.”