UK Oil & Gas (AIM: UKOG) has announced that due to continued investor demand, the Company has accepted a further investment of £0.52 million by means of a placing of new Ordinary Shares at a price of 0.016 pence per share. The Issue Price represents a discount of approximately 26% per cent to the Closing Price of 0.0215 pence per Ordinary Share on 20th November 2025, being the latest practicable business day prior to the publication of this Announcement.
These additional funds now bring the total new investment into the Company since 2nd October 2025 to over £5 million (see RNS of 2nd, 3rd and 6th October 2025), which will be used to fund the Company's currently planned and budgeted hydrogen storage, hydrogen production and energy transition activities to end 2026.
Use of Proceeds:
This additional tranche of funds will permit the Company to further accelerate and strengthen the primary technical, economic modelling studies and related costs detailed in the 'use of funds' stated in the Company's RNS of 2nd, 3rd and 6th October 2025.
Specifically, these funds will also assist the Company in meeting the costs necessary to deliver a new collaboration between our wholly owned subsidiary UK Energy Storage ('UKEn') and a second substantive regional hydrogen pipeline provider, the collaboration being focussed upon the Company's South Dorset Storage project. This new work will be complementary to the collaboration with National Gas (see RNS 1st October 2025), which initially focusses on UKEn's Yorkshire storage opportunity.
As stated in our RNS of 6th October, since both hydrogen storage and hydrogen pipeline operators must now submit joint applications for any government revenue support, the Company sees this additional collaboration as essential to support and strengthen the likelihood of securing government revenue support via the Hydrogen Transport and Hydrogen Storage Business Model allocation rounds, due to commence in late spring 2026.
Additionally, the funding will also assist UKEn in further progressing a potential electrolytic hydrogen generation project geared initially to decarbonise the energy use of a substantive Dorset-based industrial user. The project intends to help establish the hydrogen economy in Dorset and is synergistic with UKEn's national scale South Dorset hydrogen storage project. The funding will permit the necessary technical and economic studies to be undertaken to build upon initial fruitful discussions.
Placing Summary
- The Placing raised £520,000 (before expenses) through the issue of 3,249,134,670 Placing Shares at the Issue Price.
- The net proceeds of the Placing will be utilised 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 3,249,134,670 Placing Shares, to raise gross proceeds of £520,000 to participants in the Placing. Admission to trading on AIM is expected on or around 27th November 2025 ("Admission"). CMC Markets UK Plc ("CMC"), trading as CapX, acted as the Company's sole placing agent in respect of the Placing.
Stephen Sanderson UKOG's Chief Executive commented:
'We are delighted that this additional funding means the Company has now secured new investment of over £5 million since early October, 2025. Crucially, these funds will assist us in carrying out our currently planned and budgeted 2026 hydrogen storage, hydrogen production and energy transition activities. The new funding will also help us to deliver a second collaboration with a substantive regional hydrogen pipeline provider, in addition to collaboration with National Gas. These collaborations are both essential steps that will strengthen our intended application for government hydrogen storage revenue support in the coming year.'
Source: UK Oil & Gas
