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5/7/21
UK Oil & Gas PLC (London AIM: UKOG) is pleased to announce that it has successfully raised approximately GBP5.0 million to fund its remaining share of the Turkey Basur-3 appraisal well's drilling, completion and testing costs and planned 2D seismic acquisition costs through a placing ("Placing") of 2,763,888,878 new ordinary shares ("Placing Shares"). The Company holds a 50% interest in Basur-3 and the surrounding 305 km(2) Resan licence.
The Placing's issue price of 0.18 pence per share ("Placing Price"), represents approximately a 22% discount to the closing price of the Company's ordinary shares on 01 July 2021, the business day prior to the placing's close.
Turkey Resan Licence Interest and Basur-3 appraisal well
Following completion of its acquisition of a 50% interest in the Resan Licence on 20(th) January 2021, site construction works for the Basur-3 oil appraisal well, designed to test the commercial viability and extent of the Basur-Resan oil discovery, commenced at the end of March 2021, with drilling commencing on 26 June 2021. A seismic programme designed to better delineate the Basur-Resan discovery is planned to follow Basur-3 completion. The Company has contributed its share of drilling and seismic costs to date from its existing funds and UK production income.
Use of funds
The Proceeds of the Placing will, therefore, be used primarily to pay UKOG's remaining share of Basur-3 drilling and seismic acquisition costs and for general working capital. The Company anticipates that its remaining net capital commitment to such programmes is approximately GBP2.06 million for the Basur-3 appraisal well and GBP1.1 million for the 2D seismic programme.