UK Oil & Gas PLC (AIM: UKOG) has conditionally raised gross proceeds of £1 million to develop further its hydrogen gas storage projects in Dorset and Yorkshire.
Priced at 0.05p, the issue was a 37% discount on Friday’s closing price.
Existing retail shareholders will also be offered new shares on the same terms as the placing.
Both parts of the funding require shareholder approval to go ahead.
Specifically, UKOG said the new money would allow it to initiate essential new studies as part of its applications for government Revenue Support in the first hydrogen storage allocation round and Development Consent Orders under the Nationally Significant Infrastructure Project planning regime.
The funds raised will also enable UKOG to continue negotiations with potential strategic joint venture partners and finalize a land option agreement for an additional hydrogen storage site.
Stephen Sanderson, UKOG’s chief executive, commented: “This funding, along with support from leading UK energy and hydrogen infrastructure players like RWE, Sumitomo, and SGN, allows us to significantly advance our nationally significant projects toward a competitive Revenue Support application.
It will also greatly aid in securing at least one major strategic partner as a joint venture participant and in strengthening our lobbying efforts with the new Labour government.”
