UK Oil & Gas PLC (London AIM: UKOG) is pleased to announce that further to the 23 July 2020 announcement of its agreement to take a 50% interest in the Turkish Resan oil appraisal and exploration project, it has successfully raised £2.2 million to fund its share of initial drilling and seismic costs through a placing (“Placing”) of 1,374,999,993 new ordinary shares (“Placing Shares”).
The Placing’s issue price of 0.16 pence per share (“Placing Price”), represents approximately a 15.8% discount to the closing price of the Company’s ordinary shares on 01 October, the business day prior to the placing’s close.
Turkey Resan Licence Interest
On 23 July 2020 the Company announced that it had signed a binding heads of agreement with Aladdin Middle East Ltd (“AME”), an independent oil company with 60 years of operational experience in Turkey, to take a 50% non-operated working interest in the 305 km² Resan Licence (“Licence”). UKOG intends to take an active technical role in the Licence’s 5-well oil appraisal and step-out exploration drilling and 2D seismic programme, which, Covid and weather permitting, is expected to commence this year.
The Company is currently in the final stages of negotiations to conclude the participation agreement (“PA”) and joint operating agreement (“JOA”) with respect to the Licence. Execution of the PA and JOA will be reported in due course.
Use of funds
The Proceeds of the Placing will, therefore, be used primarily to support and fund UKOG’s share of initial Turkish Licence operations costs, to include the purchase of long-lead drilling equipment, construction of a drilling pad and necessary preparations for seismic acquisition. In the unexpected event that the PA and JOA are not entered into, the Company will deploy the proceeds of the Placing for working capital and to further developing its existing UK assets.
Placing Information
The Appendix to this Announcement contains the detailed terms and conditions of the Placing and the basis on which investors agreed to participate in the Placing. The Placing has not been underwritten by WH Ireland. Placees are deemed to have read and understood this Announcement in its entirety, including the Appendix, and to have made their offer on the terms and subject to the conditions contained herein and to have given the representations, warranties, undertakings and acknowledgements contained in the Appendix to this Announcement.
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 and Settlement
Application will be made for the admission to trading on the AIM market (“AIM”) of London Stock Exchange plc (“LSE”) of the Placing Shares (“Admission”). Admission is expected to occur on or around 08 October 2020. Following Admission, the Company will have 12,474,385,050 Ordinary Shares in issue. There are no shares held in treasury. The total voting rights in the Company is therefore 12,474,385,050 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.
Qualified Person’s Statement
Matt Cartwright, UKOG’s Commercial Director, who has over 36 years of relevant experience in the global oil industry, has approved the information contained in this announcement. Mr Cartwright is a Chartered Engineer and member of the Society of Petroleum Engineers.
