REG - UK Oil & Gas PLC - Results for six-month period ended 31 March 2025
30/09/2025 18:00
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RNS Number : 4900B UK Oil & Gas PLC 30 September 2025
30 September 2025
UK OIL & GAS PLC
("UKOG" or the "Company)
Unaudited results for the six-month period ended 31 March 2025
UK Oil & Gas Plc (AIM: UKOG) is pleased to announce its Interim Results
for the period ended 31 March 2025. A copy of the Interim Results will also be
made available on the Company's website: www.ukogplc.com.
Following the publication of the 2024 Annual Report and the 2025 Interim
Report today, it is expected that the suspension of trading the Company's
ordinary shares will be lifted and trading will resume as soon as the annual
report and 2025 interim results are available on the Company's website.
CHIEF EXECUTIVE'S STATEMENT
I am pleased to present the unaudited results of UK Oil & Gas PLC ("UKOG")
for the six-month period ended 31 March 2025.
The Company is advancing its transition from a petroleum exploration company
to a pioneering clean energy developer with a bold vision to deliver
nationally significant salt cavern hydrogen storage projects in South Dorset
and East Yorkshire. This transition is fully in line with the Government's
Clean Power 2030 target. We regard our planned at scale storage projects to be
key enablers to deliver the government's clean power and decarbonisation
targets in the south and north-east of the UK.
Our South Dorset project remains the sole planned at scale hydrogen storage
project in the southern half of the UK. It will, therefore remain key to
enabling the establishment of the future hydrogen network in the south and the
decarbonisation of the UK's third largest CO2e emissions cluster by providing
essential buffering of supply and demand to pipelines, producers and
offtakers.
UK Energy Storage Ltd ("UKEn"), our wholly owned subsidiary, is at the
vanguard of this exciting and real ambition and is one of a handful of
potential hydrogen storage operators liaising with the Department of Energy
Security and Net Zero's Hydrogen Storage Business Model group.
In March 2025, a report by Quod, an independent planning and economics
consultancy, specialising in modelling the economic impacts of major
infrastructure projects, stated that our South Dorset project could contribute
£2.3bn annually to the UK economy during its 30+ year operational life.
In addition, £665 million further Gross Value Added (GVA) of direct and
indirect/supply chain economic benefits could result from the planned
four-year construction phase, meaning the creation of up to 2,100 jobs
directly and a further 5,100 jobs in the supply chain during
construction.
In January of this year, we reported the findings of DEEP.KBB GmbH, one of
Europe's leading salt cavern design and underground energy storage engineering
groups, who had completed preliminary project design for our proposed new
storage facility located west of Weymouth in Dorset.
The design confirmed the site would comprise 24 caverns providing up to 1.01
billion standard m³ ("bcm") working hydrogen volume, 12% greater than our
original project at Portland Port, with hydrogen withdrawal and injection
rates providing up to 2.9 times the annual cycling capacity of Portland,
creating a technical maximum annual storage capacity of 30.2 TWh¹/yr vs
Portland's 10.4 TWh¹/yr.
UKEn executed two Memorandums of Understanding with Portland Port to jointly
pursue hydrogen opportunities centred around the Port and our South Dorset
Storage site, including the generation of 1 GW of green hydrogen via import by
ship of green hydrogen carrier liquids, and the generation of green hydrogen
via electrolysis within Portland Port.
This addition of a potential material source of green hydrogen, directly
linked to UKEn's South Dorset storage site, would both enhance our project's
national significance and the prospects of UKEn securing revenue support in
the government's forthcoming Hydrogen Storage allocation round.
Complementing our membership of The Solent Cluster, the £28 billion Dorset
Clean Energy Super Cluster (DCESC) was officially launched at UKREiiF 2025.
Anchored around Portland Port and fully supported by Dorset Council, the
initiative encompasses the company's Dorset hydrogen projects alongside 2 GW
of offshore wind in the English Channel, carbon capture and storage (CCS), and
the development of a new deepwater facility for wind farm construction and
maintenance. This marks a pivotal and forward-looking development for the
company, positioning it at the heart of one of the UK's most ambitious and
innovative clean energy clusters.
As clean power and hydrogen storage is now our primary focus, the Company has
also ceased its petroleum exploration and appraisal activities in Turkey.
After successful reperforating and extensive swab testing by operator Aladdin
Middle East ("AME"), we mutually concluded that, in the absence of commercial
rates of hydrocarbons, no further testing of Pinarova-1 would take place. We
have decided to end our exploration activities in Turkey by transferring our
50% interest in the Resan licence to our joint venture partners AME.
The Company also made a significant decision about the future of Loxley, our
100%-owned hybrid gas and hydrogen feedstock project by appointing divestment
and project marketing specialists to facilitate the farmout of up to a 50%
working interest.
However, in an increasingly difficult and hostile environment for the UK
onshore petroleum sector, no farmout resulted from these marketing efforts. As
a result, the Company decided to relinquish PEDL234, containing the Loxley and
Broadford Bridge discoveries, at end-June 2025. To that end negotiations
continue with CeraPhi Energy Ltd regarding the transfer and re-purposing of
the Broadford Bridge site into a geothermal clean energy agriculture
development.
Fully in line with this shift of emphasis towards renewable energy storage, we
also agreed the sale of our 100%-owned subsidiary UKOG (GB) Limited, subject
to regulatory approvals, to Servatec Holdings Limited for a cash consideration
of £400,000. UKOG (GB)'s assets are a 10% non-operated interest in the
Horndean oil field and a 5% non-operated interest in the Avington oil field.
OPERATIONAL REVIEW
Health, Safety and Environment
There were again no Lost Time Injuries, reportable environmental incidents or
health issues on any of UKOG's sites during the period or post period. The
operational team maintain focus on health, safety, and environmental
performance as it is number one priority.
Ongoing liaison continues with the Health and Safety Executive and the
Environment Agency ("EA") to ensure the Horse Hill site maintains its
regulatory obligations.
Hydrogen Storage Assets
South Dorset (UKEn 100%)
UKEn became a founding member of the Dorset Clean Energy Super Cluster,
centred on Portland Port.
DEEP.KBB GmbH, one of Europe's leading salt cavern design and underground
energy storage engineering groups, completed preliminary project design for
the Company's proposed new South Dorset underground hydrogen storage
facility, located west of Weymouth. The design confirms the suitability of
the site for a material scale hydrogen storage project, comprising 24 salt
caverns (three clusters of 8 caverns) at a depth of ~1330m below surface. The
project is fully in keeping with the Government's Clean Power 2030 ambitions.
The following metrics summarise the design and its advantages versus UKEn's
original Portland harbour site ("Portland"):
· The Design comprises 24 caverns at South Dorset providing up to
1.01 bcm working hydrogen volume, 12% greater than Portland's 0.9 bcm
· Calculated hydrogen withdrawal and injection rates at South
Dorset could provide up to 2.9 times the annual cycling capacity of Portland,
creating a technical maximum annual storage capacity of 30.2 TWh¹/yr vs
Portland's 10.4 TWh¹/yr, a substantive increase
· If delivered and operated at full capacity, the site's technical
maximum 30.2 TWh¹/yr annual storage capacity could represent a material
proportion of the currently predicted UK 2050 annual hydrogen storage demand
of 50-100 TWh¹/yr ²
· The design's adoption of a conventional "cushion gas" operating
scheme would significantly reduce project development costs (CAPEX) by around
36% compared to Portland, reducing costs by around £450 million to £800
million
· The design's resultant increased cycling capacity, lower CAPEX
and operating costs create potential for a significantly increased future
annual revenue base versus Portland and a more competitive submission for
government revenue support
· The site also lies closer to the planned H2 Connect hydrogen
trunk pipeline, designed to connect South Dorset to the UK hydrogen
transmission pipeline system (Project Union) and the main hydrogen clusters in
the South, East Coast and Northwest.
Notes: ¹ TWh = terawatt hours; 1 bcm of pure hydrogen has the energy
equivalent of ~3.0 TWh;
² based upon 2023 National Grid/NESO and Royal Society hydrogen demand
predictions as per RNS 27/06 and 21/08/2024.
The design's significantly greater injection and withdrawal rates and
consequent increased annual energy storage capacity compared to Portland, are
a direct consequence of the underlying geology at the location. The Triassic
salt is thicker, permitting larger caverns, and lies 1,070m closer to surface
at 1,330m versus 2,400m at Portland. The associated lower hydrostatic pressure
and temperatures within the salt underlying the Site enable a simple,
conventional "cushion gas" scheme to be utilised to provide the minimum
necessary cavern working pressure required to maintain cavern integrity.
The cushion gas scheme, as proposed by DEEP.KBB, is a proven technology used
in numerous salt caverns in the UK, Europe and USA, offering a much simpler
development and operation than the required brine compensation scheme (see
glossary) at Portland. The Design's scheme requires no additional brine wells,
brine facility or brine pipelines, plus there is only one well per storage
cavern versus two for brine compensation.
Portland Energy Hub (UKEn 100%)
The Company has made a strategic decision that it will pursue revenue support
only for its more competitive South Dorset and East Yorkshire projects and
will no longer pursue the Portland project for storage.
However, given our positive relationship with Portland Port and the role of
hydrogen in decarbonising the marine sector, the Company believes that there
remain synergies between our South Dorset project and the port. To this end,
UKEn and Portland Port have executed two Memorandums of Understanding to
jointly pursue the following joint venture hydrogen opportunities centred
around the Port and UKEn's material scale South Dorset Storage site (see RNS
of 28 January 2025):
i. Generation of 1 GW of green hydrogen via import by ship of green hydrogen
carrier liquids (and/or compressed green hydrogen) into Portland Port.
Produced hydrogen gas to be piped locally into UKEn's nearby South Dorset salt
cavern hydrogen storage site and then onwards to the wider UK.
ii. a. Generation of green hydrogen via
electrolysis within Portland Port. Designed to capture excess 'locally'
generated clean renewable (wind/solar) energy in UKEn's South Dorset storage.
Stored energy would ultimately be converted to electrical power for future
use/demand during low wind/solar periods, thus helping 'cure' the inherent
intermittency of renewables (i.e., "a Hydrogen Battery").
b. Hydrogen to power generation within Portland Port. Designed to meet initial
power requirements for UKEn's South Dorset Storage site and its environs.
The company's South Dorset hydrogen projects are now positioned at the core of
the ambitious £28 billion DCESC, officially launched at UKREiiF in May 2025.
With full backing from Dorset Council, the cluster brings together clean
hydrogen production and storage, 2 GW of offshore wind in the English Channel,
carbon capture and storage ("CCS"), and the development of a new deepwater
facility for wind farm fabrication and maintenance - all centred around
Portland Port. The company is actively collaborating with the DCESC team to
advance its projects, strengthen stakeholder engagement, and build both
regional and national political support.
East Yorkshire Hydrogen Storage (UKEn 100%)
The Company is planning a further hydrogen storage project in East Yorkshire,
located nearby to the existing SSE Thermal/Equinor Aldbrough gas storage site.
Petroleum Assets
Asset Status Summary
Asset / Licence Status Notes Date of Change
Horse Hill Oil Field (PEDL137 & PEDL246) Temporarily shut in, still owned Awaiting new retrospective planning consent following Supreme Court ruling; June 2024 (shut-in); new submission due 2025
production to resume if approved
Loxley (PEDL234) Relinquished Planning permission upheld, but no farmout secured; licence surrendered End-June 2025
Broadford Bridge (PEDL234) Relinquished Planning extension refused; licence surrendered; commercial negotiations with End-June 2025
CeraPhi Energy Ltd for re-purposing to geothermal
Turkey - Basur-Resan Licence Exited Pinarova-1 non-commercial; UKOG ceased activities and transferred 50% interest 2024/25
to AME
Horndean Oil Field (PL211, 10%) Sold Sold via sale of UKOG (GB) Ltd to Servatec Holdings Ltd Early 2025
Avington Oil Field (PEDL070, 5%) Sold (shut in) Included in sale of UKOG (GB) Ltd to Servatec; remains shut-in Early 2025
Horse Hill Oil Field, PEDL137 and PEDL246 (UKOG 85.635%)
The field and surrounding licences are operated by UKOG's subsidiary company
HHDL in which UKOG has 77.9% ownership. The Licensees are HHDL (65% interest)
and UKOG (137/246) Ltd (35% interest).
Following construction and baseline monitoring of three groundwater monitoring
boreholes, all permit pre-operational conditions were submitted to the
Environment Agency ("EA") for discharge in line with the permit requirements.
The EA subsequently awarded a permit for water injection operations via the
Horse Hill-2z well.
In June 2024, the Supreme Court ruled that in its 2019 grant of planning
consent for the Company's oil production at Horse Hill, Surrey County Council
("SCC") did not request and consider in their assessment an estimate of the
end-use carbon combustion emissions of produced hydrocarbons. The ruling now
retrospectively requires that the end-use combustion emissions must be
included in the development's Environmental Impact Assessment ("EIA") and
assessed as part of the grant of planning consent for the development.
Following the Supreme Court ruling, the Company is working closely with Surrey
County Council ("SCC") to restore planning consent via a new retrospective
planning submission later in 2025. By agreement with SCC Horse Hill oil
production was temporarily shut in pending restoration of planning approval.
It is, however, fair to say that, from a subsurface and remaining untapped
recoverable resource perspective, Horse Hill remains a strategic asset during
our transition to clean power. On the expected resumption of its profitable
production operations, the company will assess its future development
opportunities so that it can contribute to the funding of our clean energy
business.
At the time of this production shut-in 212,000 bbl of Brent quality crude had
been produced and exported from the Portland and Kimmeridge pools.
Loxley, Broadford Bridge, PEDL234 (UKOG (234) 100%)
Due to the Broadford Bridge planning refusal and as no Loxley farmout resulted
from our marketing efforts in an increasing difficult and hostile environment
for the UK petroleum sector, the Company decided to relinquish PEDL234,
containing the Loxley and Broadford Bridge discoveries, at end-June 2025.
Commercial discussions continue with CeraPhi Energy Ltd regarding potential
for a geothermal energy agriculture project incorporating the Broadford Bridge
asset.
Turkey, Basur-Resan Licence
As clean power and hydrogen storage are now UKOG's primary focus, the Company
ceased its activities in Turkey, transferring its licence interest to AME.
Horndean Oil Field (UKOG 10%)
UKOG's second producing field is Horndean located in Hampshire. Star Energy,
the Horndean oil field operator, carried out well interventions resulting in a
11% oil production increase in 2024 versus the budget. Horndean oil production
in 2025 is forecast to be 24% above 2024 actual production. January 2025
production averaged 200 barrels of oil per day, 60% higher than the production
in January 2024.
As a result of this positive production news and in keeping with our strategic
move away from fossil fuels, the Company agreed the sale of its 100%-owned
subsidiary UKOG (GB) Limited to Servatec Holdings Limited for a cash
consideration of £400,000. This included the minority non-operated interests
in two UK onshore petroleum licences, a 10% interest in PL211 and a 5%
interest in PEDL070, containing the Horndean and Avington oil fields,
respectively. Both licences are located in Hampshire.
Avington Oil Field (UKOG 5%)
Production from the Avington oil field remains shut in.
FINANCIAL REVIEW
Results overview
For the six months ended 31 March 2025, the Group reported a retained loss of
£1.37 million (H1 2024: £1.43 million).
Revenue decreased to £0.31 million (H1 2024: £0.63 million), reflecting
lower production volumes at Horse Hill following shut-in.
Cost of sales increased to £0.78 million (H1 2024: £0.40 million), driven by
higher operating costs and an increase in depletion, depreciation and
amortisation charges (£0.10 million; H1 2024: £0.05 million). As a result,
the Group reported a gross loss of £0.47 million (H1 2024: £0.22 million
profit).
Administrative expenses were significantly reduced to £0.44 million (H1 2024:
£1.28 million) as the Group continued to streamline overheads and implement
cost-saving measures. There were no other income items in the current
period (H1 2024: £0.09 million), while net foreign exchange gains were
£0.003 million (H1 2024: £0.012 million).
The Group reported an operating loss of £0.91 million (H1 2024: £0.96
million). Finance costs remained broadly flat at £0.46 million (H1 2024:
£0.47 million), primarily relating to interest on borrowings.
Overall, the loss before taxation was £1.37 million (H1 2024: £1.43
million). No taxation charge was recorded for the period (H1 2024: £nil).
The retained loss attributable to owners of the parent was £0.69 million (H1
2024: £1.22 million), with a further £0.66 million (H1 2024: £0.20 million)
attributable to non-controlling interests.
There were no other comprehensive income or expense items in either period,
and all operations remain continuing.
Earnings per share for the period were a basic and diluted loss of 0.0008
pence per share (H1 2024: 0.0007 pence loss per share).
Non-current assets totalled £2.7 million, reflecting impairment charges
recognised in 2024 on legacy oil and gas assets (2023: £38 million). The
balance primarily comprises capital expenditure on the hydrogen storage
project.
Going concern
To further progress its hydrogen storage initiatives and to support its
continued status as a going concern, the Company anticipates the likely need
to raise additional capital before the end of Q2 2026. As part of a proactive
funding strategy, the Group has already progressed the cash disposal of a
non-core subsidiary and secured key commercial terms with a finance provider
for a credit facility that it envisages will be finalised shortly , ensuring
enhanced liquidity flexibility if required. These steps reflect the Company's
disciplined approach to capital allocation and readiness to seize emerging
market opportunities in the energy transition space.
Qualified Person's Statement
Kris Bone, UKOG's Chief Technical Officer, who has 28 years of relevant
experience in the global petroleum industry, has approved the information
contained in this announcement. Mr Bone is a Chartered Chemical Engineer and
Petroleum Engineer.
For further information please contact:
UK Oil & Gas PLC
Stephen Sanderson / Kris Bone / Guzyal Mukhametzhanova Tel: 01483 941493
Zeus (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 to constitute
inside information as stipulated under the retained EU law version of the
Market Abuse Regulation (EU) No. 596/2014 (the "UK MAR") which is part of UK
law by virtue of the European Union (Withdrawal) Act 2018. The information is
disclosed in accordance with the Company's obligations under Article 17 of the
UK MAR. Upon the publication of this announcement, this inside information is
now considered to be in the public domain.
Consolidated Income Statement (Unaudited)
for the six months ended 31 March 2025
6 months 6 months
31 March 2025 31 March 2024
(Unaudited) (Unaudited)
£'000 £'000
Revenue 314 627
Depletion, Depreciation and Amortisation (98) (51)
Other Cost of sales (684) (354)
Gross (loss) / profit (468) 222
Operating expenses
Administrative expenses (444) (1,280)
Foreign exchange gains/ losses 3 12
Other income - 90
Operating loss (909) (956)
Finance costs (459) (469)
Loss before taxation (1,368) (1,425)
Taxation - -
Retained loss for the period (1,368) (1,425)
Retained loss attributable to:
Owners of the parent (685) (1,222)
Non-controlling interest (663) (203)
(1,368) (1,425)
There are no other comprehensive income or expenses during the two reported There are no other comprehensive income or expenses during the two reported
periods to disclose. periods to disclose.
All operations are continuing. All operations are continuing.
Earnings per share
Pence Pence
Basic and diluted 2 (0.0004) (0.0007)
Consolidated Statement of Financial Position (Unaudited)
as at 31 March 2025
31 March 2025 30 September 2024 31 March 2024
(Unaudited) (Audited) (Unaudited)
£'000 £'000 £'000
Assets
Non-current assets
Exploration & evaluation assets - - 34,070
Development assets 1,764 1,497
Oil & Gas properties 955 598 2,308
Property, Plant & Equipment 13 13 1,391
Total non-current assets 2,732 2,108 37,768
Current assets
Inventory 2 2 28
Trade and other receivables 824 614 491
Cash and cash equivalents 373 1,039 952
Total current assets 1,199 1,655 1,471
Total Assets 3,939 3,763 39,239
Trade and other payables (939) (1,268) (703)
Borrowings (3,310) (3,310) (3,800)
Total current liabilities (4,250) (4,578) (4,503)
Provisions (588) (759) (1,442)
Non-current Liabilities (588) (759) (1,442)
Total liabilities (4,837) (5,337) (5,945)
Net Assets 898 (1,574) 33,294
Shareholders' Equity
Share capital 14,854 14,846 14,183
Share premium account 116,810 113,766 111,245
Own shares held in trust (326) (326) -
Share-based payment reserve 82 82 2,044
Accumulated losses (130,335) (127,964) (93,975)
1,085 405 33,497
Non-controlling interest (1,984) (1,979) (203)
Total shareholders' equity 898 (1,574) 33,294
Statement of Cash Flows (Unaudited)
for the six months ended 31 March 2025
6 months 6 months
31 March 2025 31 March 2024
(Unaudited) (Unaudited)
£'000 £'000
Cash flows from operating activities
Loss from operations (1,347) (956)
Depletion & impairment 98 51
Decrease / (increase) in trade and other receivables 163 263
Increase/ (decrease) in trade and other payables 304 68
Net cash outflow from operating activities (782) (574)
Cash flows from investing activities
Expenditures on exploration & evaluation assets (686) (862)
Expenditures on oil & gas properties (29) (83)
Expenditures on property, plant & equipment - -
Net cash outflow from investing activities (715) (945)
Cash flows from financing activities
Proceeds from issue of share capital 882 705
Repayment of minority interest loans - (102)
Net cash inflow from financing activities 882 603
Net change in cash and cash equivalents (666) (916)
Cash and cash equivalents at the beginning of the period 1,039 1,868
Cash and cash equivalents at the end of the period 373 952
Notes to the half-yearly results
1. Basis of preparation
As permitted by IAS 34, 'Interim Financial Reporting' has not been applied to
these half-yearly results. The financial information of the Company for the
six months ended 31 March 2025 have been prepared in accordance with the
recognition and measurement principles of International Financial Reporting
Standards, International Accounting Standards and Interpretations
(collectively "IFRS") issued by the International Accounting Standards Board
("IASB") as adopted by the European Union ("adopted IFRS") and are in
accordance with IFRS as issued by the IASB. The condensed interim financial
information has been prepared using the accounting policies which will be
applied in the Company's statutory financial statements for the period ending
30 September 2024.
The financial information shown in this publication is unaudited and does not
constitute statutory accounts as defined in Section 434 of the Companies Act
2006. Comparative figures for the financial year ended 30 September 2024 have
been derived from the statutory accounts for 30 September 2024. The statutory
accounts have been delivered to the Registrar of Companies. The auditors have
reported on those accounts; their report was unqualified and did not contain
statements under the section 498(2) or 498(3) of the Companies Act 2006.
2. (Loss) per share
The calculation of the basic and diluted (loss) per share is based upon
6 months 6 months
31 March 2025 31 March 2024
(Unaudited) (Unaudited)
Group £'000 £'000
(Loss) attributable to ordinary shareholders (685) (1,222)
Number Number
Weighted average number of ordinary shares for 17,217,274,165 2,109,637,610
calculating basic loss per share
Pence Pence
Basic and diluted loss per share (0.0004) (0.0004)
3. Availability of the Interim Report
Copies of the report will be available from the Company's registered office
and also from the Company's website www.ukogplc.com
The information contained within this announcement is deemed by the Company to
constitute inside information under the Market Abuse Regulation (EU) No.
596/2014.
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