UK Oil & Gas PLC (AIM:UKOG) has conditionally raised gross proceeds of £1.0m by way of a placing of new ordinary shares at a price of 0.05 pence per share.

The company is also making the fund raise open to its existing retail shareholders on the same terms as the placing, through a "Retail Offer".

Stephen Sanderson, CEO, explains, “We value our shareholders. We want their support. We want them to invest in us because they actually believe in our story and believe in the future. We felt it right and proper that they are offered the terms.”

Proceeds from the placing and Retail Offer will be used to advance the company's hydrogen storage projects, including essential new engineering studies, environmental surveys and other reports necessary to submit its application for Government Revenue Support in the first hydrogen storage allocation.

The funds will also permit UKOG to further negotiations with identified prospective strategic JV partners and conclude a land option agreement for a further hydrogen storage site. Sanderson adds: “We want to put in a competitive bid for allocation support [which] will provide the capital funding and cover the fixed operating costs of the project over 15 years.”

The retail offer is expected to close by 5p.m. on Wednesday 7th August 2024.

Stephen Sanderson was interviewed by Sarah Lowther for focusIR.