Last checked at 19 May 2017 07:00
UK Oil & Gas Investments PLC
("UKOG" or the "Company")
Successful placing triggers important next phase of Weald Basin activities
UK Oil & Gas Investments PLC (London AIM and NEX: UKOG) announces that it has today raised gross proceeds of £6.5 million through the placing of 812,500,000 new ordinary shares in the Company ("New Shares") at 0.8 pence per New Share largely with institutional funds.
The net proceeds of the placing will be used to supplement the Company's existing cash balances and to fund UKOG's near-term growth strategy to further develop its leading position in the Kimmeridge Limestone oil play and five conventional oil and gas discoveries in the Weald.
Further Placing Details
The Company will apply for the admission of the New Shares to trading on AIM and such trading is expected to take place on or around 24 May 2017 ("Admission"). Following Admission, the Company's issued share capital will consist of 3,410,134,099 Ordinary Shares with no Ordinary Shares held in treasury. Therefore, the above figure of 3,410,134,099 may be used by shareholders as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in UK Oil & Gas Investments PLC under the FCA's Disclosure and Transparency Rules.
Stephen Sanderson, UKOG's Executive Chairman, commented:
"This fundraising, the largest in the Company's history, has illustrated great confidence in our strategy to deliver near-term commercial production from both the new Kimmeridge Limestone play and our interests in five conventional discoveries in the Weald Basin.
The Company can now proceed with confidence to implement the first elements of this strategy, commencing with the drilling and extended well testing of our 100% owned Broadford Bridge-1 Kimmeridge Limestone well.
Broadford Bridge will start our planned 18-month operational journey that could be truly transformational for the company. There are exciting times ahead."
For further information, please contact:
UK Oil & Gas Investments PLC
Stephen Sanderson / Kiran Morzaria Tel: 020 7440 0640
WH Ireland (Nominated Adviser and Broker)
James Joyce / James Bavister Tel: 020 7220 1666
Cenkos Securities PLC (Joint Broker)
Nick Tulloch / Neil McDonald Tel: 0131 220 6939
Square 1 Consulting (Public Relations)
Brian Alexander / David Bick Tel: 020 7929 5599
Glossary:
discovery | a discovery is a petroleum accumulation for which one or several exploratory wells have established through testing, sampling and/or logging the existence of a significant quantity of moveable hydrocarbons |
limestone | a sedimentary rock predominantly composed of calcite (a crystalline mineral form of calcium carbonate) of organic, chemical or detrital origin. Minor amounts of dolomite, chert and clay are common in limestones. Chalk is a form of fine-grained limestone |
Extended well testing | or flow test or production test, involves testing a discovery well by flowing hydrocarbons to surface, typically through a test separator, with an aggregate flow period duration over all zones of greater than 96 hours. Key measured parameters are oil and gas flow rates, downhole pressure and surface pressure. The overall objective is to identify the well's capacity to produce hydrocarbons at commercial flow rates and volumes. |