Takeover activity and strong drilling results defined the day's small-cap oil and gas news. Union Jack Oil surged after granting a potential suitor due diligence access, while Vaalco Energy reported well results in both Gabon and Egypt that exceeded expectations.
Union Jack Oil opens books to Reabold in potential takeover
Union Jack Oil (AIM:UJO) confirmed it has granted Reabold Resources due diligence access as the two parties hold discussions over a possible offer under the City Code on Takeovers and Mergers. Reabold is required to announce its intentions by 5.00pm on 13 July, giving the process a firm deadline. The news sent Union Jack Oil shares 20.9% higher to 4.05p.
Vaalco's Gabon and Egypt wells beat predrill targets
Vaalco Energy (LSE:EGY) reported strong initial flow rates from two new wells as its rig prepares to move to the SEENT area. The Ebouri-5H well in Gabon came online at more than 8,000 gross BOPD, equivalent to 4,700 BOPD net, while Egypt's HE-9 well delivered an initial rate of 529 gross BOPD, surpassing predrill expectations. Vaalco shares were quoted at 415.0p.
