In a move to advance its recently announced hydrogen storage projects, UK Oil & Gas PLC (LON:UKOG) has successfully raised £1 million through a share placing. The AIM-listed company announced the conditional placement of 2 billion new ordinary shares at 0.05p each, a 37% discount to the closing price on 2nd August 2024.
UKOG has also revealed plans for a separate Retail Offer in addition to the £1 million placing. The company intends to release further details regarding this offer in a separate announcement.
Although all investors have had the opportunity to participate in the round, the shareholder base may be a little perturbed that the company used a recent rally to secure a placing.
This fundraising effort’s primary purpose is to finance crucial activities that will significantly progress UKOG’s hydrogen storage projects, including initiating essential environmental surveys, engineering studies, and other necessary works.
Furthermore, the newly acquired funds will enable UKOG to advance negotiations with potential strategic joint venture partners and finalise a land option agreement for an additional hydrogen storage site. The company plans to bolster recognition of its hydrogen projects after already receiving from major industry players such as RWE, Sumitomo, and SGN.
CMC Markets UK Plc, operating under the name CapX, served as the sole placing agent for this significant funding round.
“The funding, together with the support from leading UK energy and hydrogen-space infrastructure players, RWE, Sumitomo and SGN, means we can now materially advance our nationally significant projects towards the goal of a competitive Revenue Support application,” said Stephen Sanderson UKOG’s Chief Executive.
“It will also greatly help us to secure at least one major strategic partner as a joint venture participant and to enhance our lobbying efforts with our new Labour government, who to date seem motivated and committed to making hydrogen and its storage a fundamental part of Britain’s renewable superpower ambition.”