UK Oil & Gas
PLC
("UKOG" or the
"Company")
Placing and Retail Offer to
fund hydrogen storage
UK Oil & Gas PLC (London AIM:
UKOG) is pleased to announce that it has conditionally raised
gross proceeds of £1.0 million by means of a placing (the
"Placing") of new Ordinary Shares (the "Placing Shares") at a price
of 0.05 pence per share (the "Issue Price"). The Issue Price
represents a discount of approximately 37% per cent to the Closing
Price of 0.08 pence per Ordinary Share on 2nd August
2024, being the latest practicable business day prior to the
publication of this Announcement.
In addition to the Placing, as the
Company values its existing retail shareholder base, the Company
also intends to offer its existing retail shareholders a "Retail
Offer" of new Ordinary Shares at the same Issue Price as the
Placing (the "Retail Offer Shares" and together with the Placing
Shares the "Fundraising Shares").
The Company will release a separate
announcement regarding the Retail Offer and its terms. For the
avoidance of doubt, the Placing is separate from and does not form
part of the Retail Offer.
The Placing and Retail Offer are
conditional, inter alia, upon the passing of resolutions to be put
to the Company's shareholders at a General Meeting, expected to be
held via a virtual platform on or around 21st August
2024 and the Fundraising Shares being admitted to trading
("Admission") on the AIM market ("AIM") of London Stock Exchange
plc ("LSE").
Use
of Proceeds:
The Placing's proceeds will be
directly employed to further specific activities required to
materially advance the Company's hydrogen storage projects.
Specifically, it will permit the Company to initiate essential new
studies, including but not limited to environmental surveys,
engineering studies and other works necessary to submit
applications for: (i) government Revenue Support in the first
hydrogen storage allocation round (see RNS 29th May
2024, 27th June 2024 and 2nd August 2024),
and (ii) Development Consent Orders under the Nationally
Significant Infrastructure Project planning regime.
The funds will also permit the
Company to further negotiations with identified prospective
strategic joint venture partners and conclude a land option
agreement for a further hydrogen storage site. The Company will
also seek further Letters of Support for its Revenue Support
application similar to those recently furnished by major energy and
UK hydrogen infrastructure players RWE, Sumitomo and
SGN.
Placing Summary
·
The Placing raised £1,000,000 (before expenses)
through the issue of 2,000,000,000
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
Subject to the passing of
resolutions by the Company's shareholders at the General Meeting,
the Company will issue 2,000,000,000
Placing Shares, to raise gross proceeds of
£1,000,000 to participants in the Placing. Admission to trading on
AIM is expected on or around 27th August 2024. 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:
"The funding, together with the support from leading UK energy
and hydrogen-space infrastructure players, RWE, Sumitomo and SGN,
means we can now materially advance our nationally significant
projects towards the goal of a competitive Revenue Support
application. It will also greatly help us to secure at least one
major strategic partner as a joint venture participant and to
enhance our lobbying efforts with our new Labour government, who to
date seem motivated and committed to making hydrogen and its
storage a fundamental part of Britain's renewable superpower
ambition."
Placing Information
The Placing has not been
underwritten by CMC and is conditional inter alia on the placing
agreement dated 2nd August 2024 between the Company and
CMC (the "Placing Agreement") not having been terminated or
breached and the Admission of the Placing Shares to trading.
The Placing is conditional on the Company
obtaining shareholder authority at the General Meeting and
the Placing Agreement includes customary terms and conditions.
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 AIM for
Admission, which is expected to become effective and dealings
in the Placing Shares to commence at, 8.00 a.m. on or around
27th August 2024.
Following Admission, the total
voting rights in the Company will therefore be 10,167,456,073 and
Shareholders will be able to 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.
For
further information, please contact:
UK Oil &
Gas Plc
Stephen Sanderson / Matt
Cartwright
Tel: 01483 941493
Zeus Capital
Limited (Nominated Adviser and
Broker)
James Joyce / James Bavister / Andrew de
Andrade
Tel: 0203 829 5000
CMC Markets
(Joint Broker)
Douglas Crippen
Tel: 0203 003 8632
Communications
Brian Alexander
Tel:
01483 941493
The
information contained within this announcement is deemed by the
Company to constitute inside information under the Market Abuse
Regulation (EU) No. 596/2014, as it forms part of UK domestic law
by virtue of the European Union (Withdrawal) Act 2018. Upon
publication of this announcement, this information is now
considered to be in the public domain.