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 £0.75 million by means of a placing (the "Placing") of new Ordinary Shares (the "Placing Shares") at a price of 0.02 pence per share (the "Placing Price").

The Placing Price represents a discount of 20 per cent to the Closing Price of 0.0250 pence per Ordinary Share on 11 January 2024, being the latest practicable business day prior to the publication of this Announcement.

The Placing is primarily in response to the government's newly announced acceleration of the first hydrogen storage allocation round, now scheduled to commence in Q3 2024 vs the prior Q3/Q4 2025 timeline. As the Company intends to submit a bid for an allocation award for its material hydrogen storage project in Portland, Dorset, the round's timetable now necessitates an acceleration of specific unbudgeted studies/works during 2024. The Company is also in discussion with a significant international trading house with regard to its participation in the Company's hydrogen storage project. The Placing's proceeds will also provide the Company with a further source of general working capital to progress its existing UK/Turkey projects.

Placing Summary

·    The Placing raised £750,000 (before expenses) through the issue of 3,750,000,000 Placing Shares at the Placing Price.

·    The Placing Shares represent 13 per cent. of the Enlarged Issued Share Capital.

·    The net proceeds of the Placing will be used as described above.

·    Participants in the Placing have subscribed on the basis of the customary terms and conditions of the Placing.

The Placing

The Company will issue 3,750,000,000 Placing Shares, to raise gross proceeds of £750,000 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 18 January 2024. CMC Markets UK plc ("CMC") acted as sole bookrunner in connection with the Placing.

Stephen Sanderson UKOG's Chief Executive commented:

"The Placing's proceeds will help us to put our material Portland, Dorset salt cavern hydrogen storage project forward for an allocation award in the government's first hydrogen storage allocation round, now scheduled for Q3 2024. We are excited by the government's acceleration of the allocation round and its emphasis upon geological hydrogen storage, a welcome recent development which now makes the new hydrogen storage sector real and tangible."

Placing Information

The Placing has not been underwritten by CMC and is conditional inter alia on the placing agreement dated 11 January 2024 between the Company and CMC (the "Placing Agreement") not having been terminated or breached and Admission of shares to trading. The Placing has been conducted utilising the Company's existing share authorities and the Placing Agreement includes customary terms and conditions.  

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.

CMC has been appointed joint broker to the Company following the Placing.

Admission to trading

Application will be made to the LSE for Admission, which is expected to become effective and dealings in the Placing Shares to commence at, 8.00 a.m. on or around 18 January 2024.

The total voting rights in the Company is therefore 28,658,513,710 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.

For further information, please contact:

UK Oil & Gas plc

Stephen Sanderson/ Allen D Howard/ Guzyal Mukhametzhanova                            Tel: 01483 941493

WH Ireland Ltd (Nominated Adviser and Broker)                                                            

James Joyce / Andrew de Andrade/James Bavister                                                          Tel: 020 7220 1666

Communications

Brian Alexander                                                                                                                                                Tel: 01483 941493  

The information contained within this announcement is deemed by the Company to constitute inside information under UK MAR