Proactive Investors - Union Jack Oil PLC (LON:UJO) has announced the acquisition of a 3% shareholding in Beacon Energy PLC (LON:BCEB), giving it exposure to a German asset base comprising onshore production, development, appraisal and exploration.
AIM-quoted Union Jack, in a statement, told investors it now holds 430 million Beacon shares, representing 3.22% of the company following the completion of its recent fundraise.
"In line with our stated strategy to seek growth opportunities in foreign jurisdictions with politically safe regimes, we are very pleased to declare our initial investment in Beacon,” Union Jack chair David Bramhill said.
“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.”
Bramhill added: "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 well."