UK Oil & Gas PLC announced today that it has conditionally raised GBP 1 million (USD 1.27 million/EUR 1.17 million) through a share issuance aimed at advancing its hydrogen storage projects.
The funds will support new studies required to apply for government revenue support in upcoming hydrogen storage allocation rounds. The share issuance is priced at 0.05 pence per share, reflecting a discount of approximately 37% from the company's closing price on August 2. Shareholders will vote on the transaction at a meeting scheduled for around August 21.
The raised capital will facilitate key activities to progress UKOG's hydrogen storage projects, aid in negotiations with potential joint venture partners, and enable the company to secure a land option agreement for an additional hydrogen storage site.
UKOG also plans to seek further letters of support (LoS) for its revenue support application, similar to those recently provided by major energy and hydrogen infrastructure players such as RWE, Sumitomo, and SGN.
This announcement follows UKOG's recent disclosure that RWE has issued a LoS for its strategic underground hydrogen storage projects in Dorset and Yorkshire. These projects are located near RWE's planned green hydrogen plants within the Solent Cluster, Didcot, and Teesside.
UKOG, which focuses on oil and gas exploration and production, is expanding its activities into gas storage, hydrogen, and geothermal energy. Its storage projects are managed by its wholly-owned subsidiary, UK Energy Storage (UKEn).
