UK Oil & Gas PLC (London AIM: UKOG) is pleased to announce that it has successfully raised gross proceeds of £1.25 million by means of a placing (the “Placing”) of new Ordinary Shares (the “Placing Shares”) at a price of 0.0875 pence per share (the “Placing Price”).
The Placing Price represents a discount of approximately 27 per cent to the Closing Price of 0.12 pence per Ordinary Share on 26 July 2022, being the latest practicable business day prior to the publication of this Announcement.
· The Placing raised £1.25m (before expenses) through the issue of 1,428,571,428 Placing Shares at the Placing Price.
· The Placing Shares represent 8.09 per cent. of the Enlarged Issued Share Capital.
· The net proceeds of the Placing will be applied to help in the delivery of the Company’s operational work programme and for working capital purposes as further detailed below.
The Company will issue 1,428,571,428 Placing Shares, to raise gross proceeds of £1.25m, to participants in the Placing. The Placing Shares will be admitted (“Admission”) to trading on the AIM market (“AIM”) of London Stock Exchange plc (“LSE”) on or around 1 August 2022.
W H Ireland Limited (“WH Ireland”) acted as sole bookrunner in connection with the Placing.
Reasons for the Placing and Use of Proceeds
The Company is undertaking the Placing to progress its corporate and operational strategy detailed in its Operational Update of 20th July 2022, consequently the net proceeds will therefore be applied towards:
· Phase 2 seismic acquisition and processing over UKOG’s Basur oil discovery in SE Turkiye; and
· For general working capital purposes.
The placing’s proceeds will be sufficient to acquire and process the further planned, but previously unbudgeted, Phase 2 seismic over the newly revealed western culmination of the Basur oil discovery (as detailed in the Company’s 30th June 2022 Turkiye update) and to help determine if the discovery is best appraised from this new more accessible area via a vertical Basur-4, or from the previously planned more operationally challenging highly-deviated Basur-3 sidetrack.
Upon reaching this next key operational and budgetary decision point, expected by mid Q4 2022, the Company would at this time need to seek further financing for its share of the Basur appraisal well and for working capital purposes to help fund its other significant projects. By their nature, UKOG’s other projects have a longer lead time to cash generation than Basur. Drilling success at Basur is anticipated to provide UKOG with additional working capital in H1 2023.
The Placing has not been underwritten by WH Ireland and is conditional inter alia on the placing agreement dated 26 July 2022 between the Company and WH Ireland (the “Placing Agreement”) not having been terminated and Admission.
The Placing Shares will be issued, credited as fully paid, and will rank pari passu with the existing Ordinary Shares in issue in the capital of the Company, including the right to receive all dividends and other distributions (if any) declared, made or paid on or in respect of such shares after the date of their issue.
Admission to trading
Application will be made to the London Stock Exchange for Admission, which is expected to become effective and dealings in the Placing Shares to commence at, 8.00 a.m. on or around 1 August 2022.
The total voting rights in the Company is therefore 17,667,804,679 and Shareholders may use this figure as the denominator by which they are required to notify their interest in, or change to their interest in, the Company under the Disclosure Guidance and Transparency Rules.
UK Oil & Gas PLC
Stephen Sanderson / Matt Gormley / Allen D Howard
Tel: 01483 941493
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