AIM-listed UK Oil & Gas has announced that, due to continued investor demand, the Company has accepted a further investment of £1 million by means of a direct subscription of new Ordinary Shares at a price of 0.03 pence per share being the same price as the Company's prior placings announced on 2nd and 3rd October 2025. The Issue Price represents a discount of approx. 9% per cent to the Closing Price of 0.033 pence per Ordinary Share on 3rd October 2025, being the latest practicable business day prior to the publication of this Announcement.
Use of Proceeds:
This further tranche of funds will now permit the Company to further accelerate and strengthen the primary technical and economic modelling studies and works detailed in the 'use of funds' stated in the Company's RNS of 2nd and 3rd October 2025 and which are restated below:
In its latest Annual Report (see RNS 30th September, 2025) the Directors highlighted the Company's transition away from the petroleum sector into clean power, emphasising that its South Dorset and Yorkshire salt-cavern hydrogen storage and generation projects will constitute the Company's future core focus. Consequently, by funding both its planned hydrogen development activities and ongoing petroleum sector commitments this material placing will enable the Company to advance its energy transition over the coming year.
More specifically, the funding will also enable the Company to commission and deliver the necessary engineering concept and design studies that are essential to deliver the planned collaboration between our wholly owned subsidiary UK Energy Storage ("UKEn") and National Gas (see RNS 1st October 2025). The Company sees that this collaboration will support and strengthen the Company's activities related to securing government revenue support via the Hydrogen Transport and Hydrogen Storage Business Model ('HSBM') allocation rounds, now scheduled to commence in H1 2026. Following meetings with the government's HSBM team on 23rd September 2025 the new requirement for both storage and pipeline operators to submit joint applications for government revenue support makes the delivery of such studies and planned collaboration key for UKEn's future success.
The funding will also enable UKEn to progress a potential combined electrolytic hydrogen generation and local scale salt-cavern hydrogen storage scheme in central eastern Dorset. The funding will permit the necessary technical studies to be undertaken to build upon initial discussions with Dorset Council and a significant Dorset based industrial hydrogen offtaker.
Additionally, the proceeds will also be used to complete economic modelling to further discussions with energy infrastructure and sector specialists with the object of securing a key strategic joint venture partner for UKEn's hydrogen storage projects.
Placing Summary
- The Subscription raised £1,000,000 (before expenses) through the issue of 3,333,333,330 Subscription Shares at the Issue Price.
- The net proceeds of the Subscription will be utilised as described above.
- Participants in the Subscription have subscribed on the basis of the terms and conditions set out in the subscription letter and is conditional only on Admission (as defined below).
The Subscription
The Company will issue 3,333,333,330 Subscription Shares, to raise gross proceeds of £1,000,000 to participants in the Subscription. Admission to trading on AIM is expected on or around 9th October 2025 ("Admission"). Zeus Capital Limited ("Zeus"), acted as the Company's sole agent in respect of the Subscription.
Stephen Sanderson UKOG's Chief Executive commented:
'This week's successful funding, totalling £4.5 million, now firmly places the Company in a strong position to advance its full portfolio of hydrogen storage and generation projects towards timely fruition. We can now commence necessary studies to ensure we can deliver on our collaboration with National Gas, a key step that will strengthen our intended applications for government revenue support in the coming year.'
Source: UK Oil & Gas
