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

UK Oil & GasAnnouncement

02/10/2025 07:00

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RNS Number : 7265B  UK Oil & Gas PLC  02 October 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")

 

Successful funding for UKEn Hydrogen projects

 

UK Oil & Gas PLC (London AIM: UKOG) is pleased to announce that it has
successfully raised gross proceeds of £3 million by means of a placing (the
"Placing") of new Ordinary Shares (the "Placing Shares") at a price of 0.03
pence per share (the "Issue Price"). The Issue Price represents a discount of
approximately 35% per cent to the Closing Price of 0.046 pence per Ordinary
Share on 1(st) October 2025, being the latest practicable business day prior
to the publication of this Announcement.

 

Use of Proceeds:

 

In its latest Annual Report (see RNS 30(th) September, 2025) the Directors
highlighted the Company's  transition away from the petroleum sector into
clean power, emphasising that its South Dorset and Yorkshire salt-cavern
hydrogen storage and generation projects will constitute the Company's future
core focus. Consequently, by funding both its planned hydrogen development
activities and ongoing petroleum sector commitments this material placing will
enable the Company to advance its energy transition over the coming year.

 

More specifically, the funding will also enable the Company to commission and
deliver the necessary engineering concept and design studies that are
essential to deliver the planned collaboration between our wholly owned
subsidiary UK Energy Storage ("UKEn") and National Gas (see RNS 1(st) October
2025). The Company sees that this collaboration will support and strengthen
the Company's activities related to securing government revenue support via
the Hydrogen Transport and Hydrogen Storage Business Model ("HSBM") allocation
rounds, now scheduled to commence in H1 2026. Following meetings with the
government's HSBM team on 23(rd) September 2025 the new requirement for both
storage and pipeline operators to submit joint applications for government
revenue support makes the delivery of such studies and planned collaboration
key for UKEn's future success.

 

The funding will also enable UKEn to progress a potential combined
electrolytic hydrogen generation and local scale salt-cavern hydrogen storage
scheme in central eastern Dorset. The funding will permit the necessary
technical studies to be undertaken to build upon initial discussions with
Dorset Council and a significant Dorset based industrial hydrogen offtaker.

 

Additionally, the proceeds will also be used to complete economic modelling to
further discussions with energy infrastructure and sector specialists with the
object of securing a key strategic joint venture partner for UKEn's hydrogen
storage projects.

 

Placing Summary

 

·    The Placing raised £3,000,000 (before expenses) through the issue
of 10,000,000,000 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

 

The Company will issue 10,000,000,000 Placing Shares, to raise gross proceeds
of £3,000,000 to participants in the Placing. Admission to trading on AIM is
expected on or around 8(th) October 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:

" This material funding will help move our hydrogen projects towards fruition,
permit us to deliver on our collaboration with National Gas and strengthen our
 intended submission of applications for government revenue support in the
coming year."

 

Placing Information

The Placing is conditional inter alia on the placing agreement dated 1(st)
October 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 8(th) October 2025.

Following Admission, the total voting rights in the Company will therefore be
28,249,134,666 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.

With respect to the Company's RNS of 7(th) August 2025 regarding the issue of
960,427,000 ordinary shares in the Company to the Company's Employee Benefit
Trust, application for admission is being made at the same time as the Placing
Shares with admission expected to become effective on the same day at, 8.00
a.m. on or around 8th October 2025 and which does not affect the total voting
rights for this announcement.

 

 

For further information, please contact:

UK Oil & Gas Plc

Stephen Sanderson / Guzyal Mukhametzhanova /Kris
Bone                                    Tel: 01483
941493

 

Zeus Capital Limited (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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