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Highlights
- UKOG raises GBP 3M through equity issues to fund UKEn hydrogen initiatives.
- The proceeds will support engineering studies, collaborations, and government revenue applications.
- The company placed 10B new shares at 0.03 pence per share.
UK Oil & Gas PLC (LSE:UKOG) announced that it has successfully raised gross proceeds of GBP 3M through a placing of 10,000,000,000 new ordinary shares at a price of 0.03 pence per share. The issue price represents a discount of approximately 35% compared to the closing price of 0.046 pence per ordinary share on 1 October 2025, the last practicable business day before the announcement.
The equity issue is intended to fund UKEn Hydrogen projects, including South Dorset and Yorkshire salt-cavern hydrogen storage and generation initiatives, which the company has identified as its future core focus. The funding also supports ongoing petroleum sector commitments while advancing the company’s energy transition strategy.
Use of Proceeds
The funds will allow UKEn to commission and deliver essential engineering concept and design studies for its planned collaboration with National Gas. This collaboration is aimed at fulfilling the new government requirements for joint applications by storage and pipeline operators for Hydrogen Transport and Hydrogen Storage Business Model (HSBM) revenue support, scheduled to commence in H1 2026.
Additionally, the proceeds will be used to progress a potential combined electrolytic hydrogen generation and local-scale salt-cavern hydrogen storage project in central eastern Dorset. The funding will cover necessary technical studies to support discussions with Dorset Council and a major local industrial hydrogen offtaker.
The equity will also enable UKEn to complete economic modelling and engage with energy infrastructure and sector specialists to secure strategic joint venture partnerships for its hydrogen storage projects.
Placing Details
The placing raised GBP 3M (before expenses) through the issue of 10,000,000,000 shares at 0.03 pence per share. Admission to trading on AIM is expected around 8 October 2025. CMC Markets UK Plc, trading as CapX, acted as sole placing agent.
Management Commentary
Stephen Sanderson, UKOG Chief Executive, stated: “This material funding will help move our hydrogen projects towards fruition, permit us to deliver on our collaboration with National Gas and strengthen our intended submission of applications for government revenue support in the coming year.”
