Funding initial Turkey operations23 Mar 2021 09:47
2.2 million were raised in October 2020 at 0.16p- see the full RNS
£2.2m placing funding initial Turkey operations
Fri, 2nd Oct 2020 11:43
RNS Number : 9714A
UK Oil & Gas PLC
02 October 2020
UK Oil & Gas PLC
("UKOG" or the "Company")
Funding of initial Turkey operations costs achieved via £2.2 million placing
UK Oil & Gas PLC (London AIM: UKOG) is pleased to announce that further to the 23 July 2020 announcement of its agreement to take a 50% interest in the Turkish Resan oil appraisal and exploration project, it has successfully raised £2.2 million to fund its share of initial drilling and seismic costs through a placing ("Placing") of 1,374,999,993 new ordinary shares ("Placing Shares").
The Placing's issue price of 0.16 pence per share ("Placing Price"), represents approximately a 15.8% discount to the closing price of the Company's ordinary shares on 01 October, the business day prior to the placing's close.
Turkey Resan Licence Interest
On 23 July 2020 the Company announced that it had signed a binding heads of agreement with Aladdin Middle East Ltd ("AME"), an independent oil company with 60 years of operational experience in Turkey, to take a 50% non-operated working interest in the 305 km² Resan Licence ("Licence"). UKOG intends to take an active technical role in the Licence's 5-well oil appraisal and step-out exploration drilling and 2D seismic programme, which, Covid and weather permitting, is expected to commence this year.
The Company is currently in the final stages of negotiations to conclude the participation agreement ("PA") and joint operating agreement ("JOA") with respect to the Licence. Execution of the PA and JOA will be reported in due course.
Use of funds
The Proceeds of the Placing will, therefore, be used primarily to support and fund UKOG's share of initial Turkish Licence operations costs, to include the purchase of long-lead drilling equipment, construction of a drilling pad and necessary preparations for seismic acquisition. In the unexpected event that the PA and JOA are not entered into, the Company will deploy the proceeds of the Placing for working capital and to further developing its existing UK assets.
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