Uk Oil & Gas Regulatory News (UKOG)

For Immediate Release

29 October 2014

UK Oil & Gas Investments PLC

("UKOG" or the "Company")

UKOG secures US$10 million debt facility

UKOG submits application in UK 14th Landward Licence Round

The Board of UKOG is pleased to announce that the Company has today drawn the first US$1 million of a new US$10 million unsecured debt facility and has jointly applied for a 200 km2 area covering the southern part of the Isle of Wight as part of the UK 14th Landward Licence Round.

Debt Facility:

UKOG has entered into an unsecured US$10 million debt facility to be provided by YA Global Master SPV Ltd ("YAGM") to fund further investment in the UK oil and gas sector in accordance with the Company's investing policy (the "YAGM Facility"). Any drawdowns by the Company under the YAGM Facility are to be repaid in twelve equal monthly amounts ("Monthly Repayment Amount") and carry an annual interest rate of 10 per cent.

UKOG is entitled to pay the Monthly Repayments Amounts either in cash, or at the Company's sole election, by means of conversion of the Monthly Repayment Amount into new ordinary shares, to be issued at a conversion price equal to 95% of the average of the lowest 5 daily volume weighted average prices ("VWAP") during the 15 trading days prior to the scheduled repayment date. 

All drawdowns under the YAGM Facility are subject to the prior approval of YAGM.

The Company has drawn down US$1 million under the YAGM Facility, which is repayable at the rate of US$83,333 per month on or before 1 November 2015, together with accrued interest.

UK 14th Landward Licence Round:

UKOG has submitted an application to the UK Department of Energy and Climate Change ("DECC") for a licence in the 14th Landward Licence Round ("14th Round"). This application was submitted by DECC's bid deadline of 28 October 2014, in partnership with Angus Energy Limited ("Angus Energy") and Solo Oil Plc ("Solo Oil").

The proposed interests are:

· Angus Energy, 5% (operator)

· UKOG, 65%

· Solo Oil, 30%

Angus Energy, which is 6% owned by UKOG, is a qualified UK onshore exploration and production operator through DECC. Angus Energy operates the conventional onshore Lidsey and Brockham oil fields located in the Weald Basin, and is the designated operator of Horse Hill Developments Ltd ("HHDL"), currently drilling the Horse Hill-1 well on the northern side of the Weald Basin near Gatwick Airport. Angus, UKOG and Solo Oil are currently working together as owners, along with three other companies, of HHDL.

Angus Energy, UKOG and Solo Oil have applied for a 200 km2 area covering the southern part of the Isle of Wight. For UKOG, this application complements UKOG's recent acquisition of NP Solent Limited, operator of the adjacent offshore Isle of Wight acreage (Licence P1916). UKOG believes that the large undrilled offshore exploration prospect extends into the adjacent onshore area, which is also believed to hold a number of other independent leads within the application area.

David Lenigas, the Company's Chairman, commented:

"UKOG has rapidly grown its investment portfolio of UK oil and gas production and exploration investments and the Board is keen to continue expanding this portfolio. The Board intends that the new debt facility will be used to fund further potential farm-ins and investments in the oil and gas sector, including our application submitted in the UK 14th Round.

UKOG is pleased to continue our successful relationship with Angus Energy and Solo Oil. Our 14th Round application builds on UKOG's recent acquisition of Northern Petroleum Plc's UK assets where UKOG is excited about the oil and gas exploration potential of the Isle of Wight, both onshore and offshore."

For further information, please contact:

-ENDS-