Re- Decision scc- Here is the rest of RNS3 Jul 2020 12:19
I acknowledge the concerns of private investors about 'dilution' of shares in the Company. However, it is our view that, particularly in these financially uncertain times, raising funds from equity remains the most prudent and only feasible way to fund projects that can add substantive growth in the asset value of the company.
Had oil prices remained at their healthy pre-Covid levels, this would have been a different story, as with our current low $13/bbl operating costs, the Company would have been able to consolidate a heathy cash position, plus debt funding would be a reality. I trust you understand that, at present, we do not live in such a world. We hope and plan for a better Brent price in the not too distant future.
I believe that it is also a sign of confidence in the underlying strength of the company, together with the resultant liquidity of our stock, that has enabled us to raise significant funds during such troubled times. This liquidity is a valuable tool, but rest assured that we will only use this route when it is the best or only way to implement our strategy to grow the value of the company.
Finally, I had hoped to bring news of a positive outcome from yesterday's Surrey County Council's Planning and Regulatory Committee regarding the Loxley gas appraisal project. However, the application was refused by a narrow 6-5 decision. Unfortunately, the precise reasons for refusal remain unclear, which is less than satisfactory, as was the general conduct and progress of the meeting.
We have severe reservations regarding the validity of the council's decision. The meetings main discussion centred around a highways issue regarding the suitability of the Dunsfold road adjoining the site to accommodate the envisaged traffic flows. However, the County Highway's and Planning Officers supported the application, stating that the submitted traffic mitigation plans would permit safe use of the road and entry and egress from the site.
As I made clear at the planning hearing, UKOG believes Loxley is a material regional resource, which could have made, and could still make, a timely contribution to Surrey and the UK's recovery from the Covid-related economic downturn, something that has affected everyone.
It is particularly disappointing that such a net zero compliant project which could have been used to generate clean hydrogen fuel for the UK has had this setback. Whilst we are obviously disappointed and are considering our position, our current thoughts are that we will likely appeal the decision via the planning inspectorate.
To conclude on a positive note, at the time of writing, Brent continues to stay at $40/bbl, which is very encouraging. We continue to actively pursue and evaluate new opportunities, both home and abroad, to add near term production revenues for the Company and we will be operating prudently and creatively to enable UKOG to perform at an optimum level.
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