REG - UK Oil & Gas Inv PLC - Loan Conversion <Origin Href="QuoteRef">UKOGa.L</Origin>

UK Oil & GasAnnouncement

09/01/2018 11:30

RNS Number : 3621B
UK Oil & Gas Investments PLC
09 January 2018
UK Oil & Gas Investments PLC
  ("UKOG" or the "Company") 
Loan Conversion
UK Oil & Gas Investments PLC (London AIM: UKOG), announces that, in relation to the 10 million financing announced on 15 November 2017 ("the Loan"), it has received a notice of exercise from Cuart Investments PCC Ltd and YA II PN Ltd ("Investors") to convert part of the Loan, with an aggregate par value of 500,000, into equity ("Conversion Notice").
The Company has therefore allotted 18,581,144 new ordinary shares to the Investors ("Investor Shares"). The Investor Shares will rank pari passu in all respects with the existing ordinary shares. 
Application has been made for these New Ordinary Shares to be admitted to trading on AIM and it is anticipated that trading in such shares will commence on or around 15 January 2018.
The Company has received the second and final tranche of the loan note at the end of last year which increased the outstanding loan amount to 7.5 million. After today's conversion, the Par Value outstanding on the Loan is 7 million.
Following Admission, the Company's enlarged issued share capital will comprise 3,649,287,689 ordinary shares. The Company does not hold any shares in treasury. This figure of 3,649,287,689ordinary shares may be used by shareholders in the Company as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change in their interest in, the share capital of the Company under the FCA's Disclosure and Transparency Rules.
Loan Terms
The terms of the Loan, as stated by the Company on 15 November 2017, includes a provision that for as long as any portion of the Loan is outstanding, neither the Investors nor any of their affiliates;
i. shall hold any net short position with respect to the equity of UKOG and 
ii. can trade more than 15 % of the number of UKOG shares that have traded in a trading day.
The Loan is convertible in tranches of not less than 250,000, with a limit of 3 million per quarter, starting from 15 November 2017, unless otherwise agreed by the Company.
Options
There were 35 million options held by manament and consultants which were due to expire on 31 December 2017. However, given the ongoing activities at the Broadford Bridge well site and the forthcoming publication of the Company's Annual Accounts, the holders of these options were prevented from exercising these options under the provisions of UKOG's Share Dealing Code. As such, the exercise period is deemed to be extended until the date which falls ten business days after the later of the date on which the option holder ceases to be an insider (as defined in the Criminal Justice Act 1993 and the Financial Services and Markets Act 2000) or the date on which the option holder is no longer restricted from dealing under the terms of UKOG's Share Dealing Code, or is otherwise no longer prohibited.
For further information, please contact:
UK Oil & Gas Investments PLC
Stephen Sanderson / Kiran Morzaria  Tel: 01483 243450 
WH Ireland (Nominated Adviser and Broker)
James Joyce /James Sinclair-Ford Tel: 020 7220 1666
Cenkos Securities PLC (Joint Broker)
Joe Nally / Leif Powis  Tel: 0207 397 8919
Public Relations
Brian Alexander / David Bick Tel: 01483 243450 
UKOG Licence Interests
The Company has interests in the following nine UK oil and gas licences:
Asset
Licence
UKOG's Interest
Licence Holder
Operator
Area (km2)
Status
Avington1
PEDL070
5%
UKOG (GB) Limited
IGas Energy Plc
18.3
Field in stable production
Baxters Copse2
PEDL233
50%
UKOG Weald Limited
IGas Energy Plc
89.6
Appraisal/development well planned; licence extended to 2018
Broadford Bridge 3
PEDL234
100%
Kimmeridge Oil & Gas Limited 4
Kimmeridge Oil & Gas Limited 4
300.0
BB-1 & 1z drilling completed, testing of multiple zones underway
Holmwood3
PEDL143
40%
UKOG
Europa Oil & Gas (Holdings) plc
91.8
Holmwood-1 exploration well planned in 2018
Horndean1
PL211
10%
UKOG (GB) Limited
IGas Energy Plc
27.3
Field in stable production
Horse Hill5
PEDL137
32.435%
Horse Hill Developments Ltd
Horse Hill Developments Ltd
99.3
Planning Permission & EA permit granted for production tests and two wells
Horse Hill5
PEDL246
32.435%
Horse Hill Developments Ltd
Horse Hill Developments Ltd
43.6
As above
Isle of Wight (Onshore)2, 3
PEDL331
65%
UKOG
UKOG
200.0
Preparing Arreton-3 planning submission
Markwells Wood2
PEDL126
100%
UKOG (GB) Limited
UKOG (GB) Limited
11.2
Submitted planning application for appraisal and field development
Notes:
1. Oil field currently in production.
2. Oil discovery pending development and/or appraisal drilling.
3. Exploration asset with drillable prospects and leads. PEDL234 contains the Broadford Bridge-1 and 1z
discovery well and the extension of the Godley Bridge Portland gas discovery.
4. UKOG has a 100% interest in Kimmeridge Oil & Gas Limited, which has a 100% interest in PEDL234.
5. Oil discovery with recently completed flow testing.
6. UKOG has a direct 49.9% interest in HHDL, which has a 65% interest in PEDL137 and PEDL246.
The information contained within this announcement is deemed by the Company to constitute inside information under the Market Abuse Regulation (EU) No. 596/2014.

This information is provided by RNS
The company news service from the London Stock Exchange
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