UK Oil & Gas PLC

("UKOG" or the "Company")

Successful Funding for South Dorset H2 Storage

UK Oil & Gas PLC (London AIM: UKOG) is pleased to announce that it has successfully raised gross proceeds of £ £400,431 by means of a private placing to a small number of professional investors (the "Placing") of new Ordinary Shares (the "Placing Shares") at a price of 0.0102 pence per share (the "Issue Price"). The Issue Price represents a discount of approximately 42 per cent to the Closing Price of 0.0175 pence per Ordinary Share on 20^th February 2025, being the latest practicable business day prior to the publication of this Announcement.

Use of Proceeds:

Following our recent meetings with representatives of the government's Hydrogen Storage Business Model ("HSBM") team in December 2024, January and February 2025, the Placing's proceeds will be utilised to further the progress of the Company's South Dorset hydrogen storage project  (see RNS 27^th January 2025) and its participation in the first HSBM Procurement Round, scheduled for later this year.

Specifically, the funds will permit the following to be initiated, strengthening the South Dorset project's credentials, helping achieve a competitive HSBM Procurement bid package and thus increasing the likelihood of obtaining government HSBM revenue support:

·    Conceptual design and preliminary metrics of a joint venture green hydrogen generation and import project at the adjacent deepwater Portland Port. The project geared towards the import of Middle Eastern green hydrogen carrier fluids and associated material green hydrogen production for transmission into our South Dorset storage site and onwards to the wider UK via SGN's H2 Connect pipeline. The creation of co-located hydrogen production, substantive storage and onward trunk pipeline transmission would position our South Dorset project as one of only three similar hydrogen "cohorts" in the UK, further strengthening the case for government revenue support.

·    Conceptual design of surface facility, pipeline routing, borehole placements and related construction works as part of  pre-Front End Engineering Design, necessary to meet current eligibility criteria for the HSBM Procurement process.

·    Operational expenses related to the HSBM Procurement process and bid submission.

·    General and administrative expenses.

Additionally, the Company continues discussions with several energy infrastructure investors regarding joint venture participation in the Company's South Dorset and Yorkshire projects owned by its wholly owned subsidiary UK Energy Storage ("UKEn"). We look forward to providing further updates in due course.

Placing Summary

·    The Placing raised £400,431 (before expenses) through the issue of 3,925,797,833 Placing Shares at the Issue Price.

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

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

Stephen Sanderson UKOG's Chief Executive commented:

"These funds are aimed squarely at strengthening the Company's ability to make a competitive bid for government revenue support in the forthcoming HSBM Procurement process, currently in its market engagement stage.  The addition of potential substantive green hydrogen production at Portland Port, adjacent to the South Dorset site, would create one of only three such hydrogen 'cohort' projects within the UK, providing integrated substantive hydrogen production, storage and onward pipeline transmission to identified users. It could be the key to kick starting a widespread hydrogen system in Southern England."

Placing Information

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 AIM for Admission, which is expected to become effective and dealings in the Placing Shares to commence at, 8.00 a.m. on or around 28^th February 2025.

Following Admission, the total voting rights in the Company will therefore be 17,288,707,666 and Shareholders will be able to 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 / Matt Cartwright                                                                           Tel: 01483 941493

Zeus Capital Limited (Nominated Adviser and Broker)                                                            

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

CMC Markets (Joint Broker)

Douglas Crippen                                                                                                                 Tel: 0203 003 8632

Communications

Brian Alexander                                                                                                                             Tel: 01483 941493  

The information contained within this announcement is deemed by the Company to constitute inside information under the Market Abuse Regulation (EU) No. 596/2014, as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018. Upon publication of this announcement, this information is now considered to be in the public domain.