UK Oil & Gas PLC Result of Placing (2892V)
02 Dicembre 2019 - 08:01AM
UK Regulatory
TIDMUKOG
RNS Number : 2892V
UK Oil & Gas PLC
02 December 2019
UK Oil & Gas PLC
("UKOG" or the "Company")
GBP2 million fund raise to help achieve stable long-term oil
production at Horse Hill
UK Oil & Gas PLC (London AIM: UKOG) is pleased to announce
that it has raised GBP2 million ("Proceeds") from a single
institutional investor through a placing ("Placing") of 235,294,117
new ordinary shares ("Placing Shares") in the capital of the
Company. The Placing's issue price of 0.85 pence per share
("Placing Price"), represents approximately a 15% discount to the
closing price of the Company's ordinary shares on the business day
prior to this announcement.
Use of Proceeds
Whilst the Company has ample cash to fully fund its remaining
85.635% interest share of Horse Hill-2z ("HH-2z") drilling-related
costs plus forward HH-1 and HH-2z production test operations, the
net Placing proceeds will be used partly to accelerate long-lead
time gas-utilisation, facilities and other related works necessary
to bring HH-1 and HH-2z into stable long-term oil production.
Furthermore, following recent discussions, the Company now
anticipates that its Horse Hill Developments Ltd ("HHDL")
co-venturers are unlikely to contribute their 14.365% share of
current cash calls pertaining to HH-2/2z drilling, HH-1/HH-2z
testing and the production-related costs detailed above.
Consequently, and in addition to the above, the net Proceeds
will be used to fund any potential shortfall from the HHDL
partners. In this respect, the Company has also submitted a
proposal to its HHDL partners to use part of the Proceeds to fully
fund their current cash call obligations in return for a
commensurate dilution of their holding in HHDL. UKOG owns a 77.9%
controlling interest in its HHDL subsidiary, which holds a 65%
operated interest in the Horse Hill oil field and licences.
It should also be noted that UKOG's wholly owned subsidiary,
UKOG (137/246) Ltd, which holds a 35% direct interest in the Horse
Hill oil field and surrounding licences, will continue to fund its
full share of current and future Horse Hill costs. UKOG's overall
interest in the field and licences totals 85.635%.
Admission and Settlement
Application will be made for the Placing Shares to be admitted
to trading on AIM and admission is expected to occur on or around
05 December 2019 ("Admission"). Upon Admission, the Company will
have 6,973,683,381 Ordinary Shares in issue. There are no shares
held in treasury.
The total voting rights in the Company are therefore
6,973,683,381and shareholders may 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. The placing is conditional upon
the terms of a placing agreement with WH Ireland and shares being
admitted to trading on AIM.
For further information, please contact:
UK Oil & Gas PLC
Stephen Sanderson / Kiran Morzaria Tel: 01483 900582
WH Ireland Ltd (Nominated Adviser and Broker)
James Joyce / James Sinclair-Ford Tel: 020 7220 1666
Cenkos Securities PLC (Joint Broker)
Joe Nally / Neil McDonald Tel: 0207 397 8919
Novum Securities (Joint Broker)
John Bellis Tel: 020 7399 9400
Public Relations
Brian Alexander Tel: 01483 900582
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 news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
ROILIFERFELFIIA
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December 02, 2019 02:01 ET (07:01 GMT)
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