AIM-listed UK Oil & Gas (UKOG) has successfully raised gross proceeds of £0.75 million by means of a placing of new Ordinary Shares at a price of 0.02 pence per share.
The Placing Price represents a discount of 20 per cent to the Closing Price of 0.0250 pence per Ordinary Share on 11 January 2024, being the latest practicable business day prior to the publication of this Announcement.
The Placing is primarily in response to the government's newly announced acceleration of the first hydrogen storage allocation round, now scheduled to commence in Q3 2024 vs the prior Q3/Q4 2025 timeline. As the Company intends to submit a bid for an allocation award for its material hydrogen storage project in Portland, Dorset, the round's timetable now necessitates an acceleration of specific unbudgeted studies/works during 2024. The Company is also in discussion with a significant international trading house with regard to its participation in the Company's hydrogen storage project. The Placing's proceeds will also provide the Company with a further source of general working capital to progress its existing UK/Turkey projects.
Placing Summary
- The Placing raised £750,000 (before expenses) through the issue of 3,750,000,000 Placing Shares at the Placing Price.
- The Placing Shares represent 13 per cent. of the Enlarged Issued Share Capital.
- The net proceeds of the Placing will be used as described above.
- Participants in the Placing have subscribed on the basis of the customary terms and conditions of the Placing.
The Placing
The Company will issue 3,750,000,000 Placing Shares, to raise gross proceeds of £750,000 to participants in the Placing. The Placing Shares will be admitted to trading on the AIM market of London Stock Exchange on or around 18 January 2024. CMC Markets UK acted as sole bookrunner in connection with the Placing.
Stephen Sanderson UKOG's Chief Executive commented:
'The Placing's proceeds will help us to put our material Portland, Dorset salt cavern hydrogen storage project forward for an allocation award in the government's first hydrogen storage allocation round, now scheduled for Q3 2024. We are excited by the government's acceleration of the allocation round and its emphasis upon geological hydrogen storage, a welcome recent development which now makes the new hydrogen storage sector real and tangible.'
Source: UKOG
