Uk Oil & Gas Regulatory News (UKOG)

THIS ANNOUNCEMENT, INCLUDING THE APPENDICES AND THE INFORMATION CONTAINED THEREIN IS RESTRICTED AND IT IS NOT FOR RELEASE, PUBLICATION, DISTRIBUTION OR FORWARDING, IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, IN OR INTO THE UNITED STATES, AUSTRALIA, CANADA, NEW ZEALAND, JAPAN, THE REPUBLIC OF SOUTH AFRICA OR IN OR INTO ANY OTHER JURISDICTION WHERE TO DO SO MIGHT CONSTITUTE A VIOLATION OR BREACH OF ANY APPLICABLE LAW OR REGULATION.

THIS ANNOUNCEMENT IS FOR INFORMATION PURPOSES ONLY AND DOES NOT CONSTITUTE OR CONTAIN ANY INVITATION, SOLICITATION, RECOMMENDATION, OFFER OR ADVICE TO ANY PERSON TO SUBSCRIBE FOR, OTHERWISE ACQUIRE OR DISPOSE OF ANY SECURITIES IN UK OIL & GAS PLC OR ANY OTHER ENTITY IN ANY SUCH JURISDICTION.

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION AS STIPULATED UNDER THE UK VERSION OF THE MARKET ABUSE REGULATION (EU NO. 596/2014) AS IT FORMS PART OF UK LAW BY VIRTUE OF THE EUROPEAN UNION (WITHDRAWAL) ACT 2018 ("UK MAR").

27 July 2022

UK Oil & Gas PLC

("UKOG" or the "Company")

Successful Placing

UK Oil & Gas PLC (London AIM: UKOG) is pleased to announce that it has successfully raised gross proceeds of £1.25 million by means of a placing (the "Placing") of new Ordinary Shares (the "Placing Shares") at a price of 0.0875 pence per share (the "Placing Price").

The Placing Price represents a discount of approximately 27 per cent to the Closing Price of 0.12 pence per Ordinary Share on 26 July 2022, being the latest practicable business day prior to the publication of this Announcement.

Placing Summary

· The Placing raised £1.25m (before expenses) through the issue of 1,428,571,428 Placing Shares at the Placing Price.

· The Placing Shares represent 8.09 per cent. of the Enlarged Issued Share Capital.

· The net proceeds of the Placing will be applied to help in the delivery of the Company's operational work programme and for working capital purposes as further detailed below.

The Placing

The Company will issue 1,428,571,428 Placing Shares, to raise gross proceeds of £1.25m, to participants in the Placing. The Placing Shares will be admitted ("Admission") to trading on the AIM market ("AIM") of London Stock Exchange plc ("LSE") on or around 1 August 2022.

W H Ireland Limited ("WH Ireland") acted as sole bookrunner in connection with the Placing.

Reasons for the Placing and Use of Proceeds

The Company is undertaking the Placing to progress its corporate and operational strategy detailed in its Operational Update of 20th July 2022, consequently the net proceeds will therefore be applied towards:

· Phase 2 seismic acquisition and processing over UKOG's Basur oil discovery in SE Turkiye; and

· For general working capital purposes.

The placing's proceeds will be sufficient to acquire and process the further planned, but previously unbudgeted, Phase 2 seismic over the newly revealed western culmination of the Basur oil discovery (as detailed in the Company's 30th June 2022 Turkiye update) and to help determine if the discovery is best appraised from this new more accessible area via a vertical Basur-4, or from the previously planned more operationally challenging highly-deviated Basur-3 sidetrack.

Upon reaching this next key operational and budgetary decision point, expected by mid Q4 2022, the Company would at this time need to seek further financing for its share of the Basur appraisal well and for working capital purposes to help fund its other significant projects. By their nature, UKOG's other projects have a longer lead time to cash generation than Basur. Drilling success at Basur is anticipated to provide UKOG with additional working capital in H1 2023.

Placing Information

The Placing has not been underwritten by WH Ireland and is conditional inter alia on the placing agreement dated 26 July 2022 between the Company and WH Ireland (the "Placing Agreement") not having been terminated and Admission.

The Placing Shares will be issued, credited as fully paid, and will rank pari passu with the existing Ordinary Shares in issue in the capital of the Company, including the right to receive all dividends and other distributions (if any) declared, made or paid on or in respect of such shares after the date of their issue.

Admission to trading

Application will be made to the London Stock Exchange for Admission, which is expected to become effective and dealings in the Placing Shares to commence at, 8.00 a.m. on or around 1 August 2022.

The total voting rights in the Company is therefore 17,667,804,679 and Shareholders may use this figure as the denominator by which they are required to notify their interest in, or change to their interest in, the Company under the Disclosure Guidance and Transparency Rules.

Contact:

The person responsible for arranging this announcement on behalf of UK Oil and Gas plc is Stephen Sanderson, CEO of the Company.

IMPORTANT NOTICES

This Announcement includes statements that are, or may be deemed to be, "forward-looking statements". These forward-looking statements can be identified by the use of forward-looking terminology, including the terms "believes", "estimates", "forecasts", "plans", "prepares", "anticipates", "projects", "expects", "intends", "may", "will", "seeks", "should" or, in each case, their negative or other variations or comparable terminology, or by discussions of strategy, plans, objectives, goals, future events or intentions. These forward-looking statements include all matters that are not historical facts. They appear in a number of places throughout this Announcement and include statements regarding the Company's and the Directors' intentions, beliefs or current expectations concerning, amongst other things, the Company's prospects, growth and strategy. By their nature, forward-looking statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. Forward-looking statements are not guarantees of future performance. The Company's actual performance, achievements and financial condition may differ materially from those expressed or implied by the forward-looking statements in this Announcement. In addition, even if the Company's results of operations, performance, achievements and financial condition are consistent with the forward-looking statements in this Announcement, those results or developments may not be indicative of results or developments in subsequent periods. Any forward-looking statements that the Company makes in this Announcement speak only as of the date of such statement and (other than in accordance with their legal or regulatory obligations) neither the Company, nor WH Ireland nor any of their respective associates, directors, officers or advisers shall be obliged to update such statements. Comparisons of results for current and any prior periods are not intended to express any future trends or indications of future performance, unless expressed as such, and should only be viewed as historical data.

The content of this Announcement has not been approved by an authorised person within the meaning of the FSMA. Reliance on this Announcement for the purpose of engaging in any investment activity may expose an individual to a significant risk of losing all of the property or other assets invested. The price of shares and any income expected from them may go down as well as up and investors may not get back the full amount invested upon disposal of the shares. Past performance is no guide to future performance, and persons needing advice should consult an appropriate independent financial adviser.

No prospectus will be made available in connection with the matters contained in this Announcement and no such prospectus is required (in accordance with the Prospectus Regulation) to be published.

No representation or warranty, express or implied, is or will be made as to, or in relation to, and no responsibility or liability is or will be accepted by WH Ireland or by any of their respective affiliates or agents as to, or in relation to, the accuracy or completeness of this Announcement or any other written or oral information made available to or publicly available to any interested party or its advisers, and any liability therefore is expressly disclaimed.

No statement in this Announcement is intended to be a profit forecast or estimate, and no statement in this Announcement should be interpreted to mean that earnings per share of the Company for the current or future financial years would necessarily match or exceed the historical published earnings per share of the Company.

The Placing Shares to be issued pursuant to the Placing will not be admitted to trading on any stock exchange other than AIM.