REG - UK Oil & Gas PLC - Additional funding for UKEn Hydrogen projects

UK Oil & GasAnnouncement

21/11/2025 07:00

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RNS Number : 4503I  UK Oil & Gas PLC  21 November 2025

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.

 

UK Oil & Gas PLC

("UKOG" or the "Company")

 

Additional funding for UKEn Hydrogen projects

 

UK Oil & Gas PLC (London AIM: UKOG) is pleased to announce that due to
continued investor demand, the Company has accepted a further investment of
£0.52 million by means of a placing (the "Placing")of new Ordinary Shares
(the "Placing Shares") at a price of 0.016 pence per share (the "Issue
Price"). The Issue Price represents a discount of approximately 26% per cent
to the Closing Price of 0.0215 pence per Ordinary Share on 20(th) November
2025, being the latest practicable business day prior to the publication of
this Announcement.

 

These additional funds now bring the total new investment into the Company
since 2(nd) October 2025 to over £5 million (see RNS of 2(nd), 3(rd) and
6(th) October 2025), which will be used to fund the Company's currently
planned and budgeted hydrogen storage, hydrogen production and energy
transition activities to end 2026.

 

Use of Proceeds:

 

This additional tranche of funds will permit the Company to further accelerate
and strengthen the primary technical, economic modelling studies and related
costs detailed in the "use of funds" stated in the Company's RNS of 2(nd),
3(rd) and 6(th) October 2025.

 

Specifically, these funds will also assist the Company in meeting the costs
necessary to deliver a new collaboration between our wholly owned subsidiary
UK Energy Storage ("UKEn") and a second substantive regional hydrogen pipeline
provider, the collaboration being focussed upon the Company's South Dorset
Storage project. This new work will be complementary to the collaboration with
National Gas (see RNS 1(st) October 2025), which initially focusses on UKEn's
Yorkshire storage opportunity.

 

As stated in our RNS of 6(th) October, since both hydrogen storage and
hydrogen pipeline operators must now submit joint applications for any
government revenue support, the Company sees this additional collaboration as
essential to support and strengthen the likelihood of securing government
revenue support via the Hydrogen Transport and Hydrogen Storage Business Model
allocation rounds, due to commence in late spring 2026.

 

Additionally, the funding will also assist UKEn in further progressing a
potential electrolytic hydrogen generation project geared initially to
decarbonise the energy use of a substantive Dorset-based industrial user. The
project intends to help establish the hydrogen economy in Dorset and is
synergistic with UKEn's national scale South Dorset hydrogen storage project.
The funding will permit the necessary technical and economic studies to be
undertaken to build upon initial fruitful discussions.

 

Placing Summary

 

·    The Placing raised £520,000 (before expenses) through the issue
of 3,249,134,670 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

 

The Company will issue 3,249,134,670 Placing Shares, to raise gross proceeds
of £520,000 to participants in the Placing. Admission to trading on AIM is
expected on or around 27(th) November 2025 ("Admission"). 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:

" We are delighted that this additional funding means the Company has now
secured new investment of over £5 million since early October, 2025.
Crucially, these funds will assist us in carrying out our currently planned
and budgeted 2026 hydrogen storage, hydrogen production and energy transition
activities. The new funding will also help us to deliver a second
collaboration with a substantive regional hydrogen pipeline provider, in
addition to collaboration with National Gas. These collaborations are both
essential steps that will strengthen our intended application for government
hydrogen storage revenue support in the coming year."

 

Placing Information

 

The Placing is conditional inter alia on the placing agreement dated 20(th)
November 2025 between the Company and CMC (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 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 27(th) November 2025.

Following Admission, the total voting rights in the Company will therefore be
36,498,269,332 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 / Guzyal Mukhametzhanova / Kris
Bone                                   Tel: 01483
941493

 

Zeus (Nominated Adviser and Broker)
 

James Joyce / James Bavister / Andrew de Andrade
                              Tel: 020 3829 5000

 

CMC Markets (Joint Broker)

Douglas Crippen
 
                   Tel: 0203 003 8632

 

Communications

Brian Alexander
 
                    Tel: 01483 941493

 

 

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