Business
Result of Placing
Result of Placing.
About this update from Uk Oil & Gas Plc
[{"type":"text","content":"\n \nRNS Number : 2892V UK Oil & Gas PLC 02 December 2019 \n\nUK Oil & Gas PLC\n(\"UKOG\" or the \"Company\")\n \n£2 million fund raise to help achieve stable long-term oil production at Horse Hill\n \nUK Oil & Gas PLC (London AIM: UKOG) is pleased to announce that it has raised £2 million (\"Proceeds\") from a single institutional investor through a placing (\"Placing\") of 235,294,117 new ordinary shares (\"Placing Shares\") in the capital of the Company. The Placing's issue price of 0.85 pence per share (\"Placing Price\"), represents approximately a 15% discount to the closing price of the Company's ordinary shares on the business day prior to this announcement.\n \nUse of Proceeds\n \nWhilst the Company has ample cash to fully fund its remaining 85.635% interest share of Horse Hill-2z (\"HH-2z\") drilling-related costs plus forward HH-1 and HH-2z production test operations, the net Placing proceeds will be used partly to accelerate long-lead time gas-utilisation, facilities and other related works necessary to bring HH-1 and HH-2z into stable long-term oil production.\n \nFurthermore, following recent discussions, the Company now anticipates that its Horse Hill Developments Ltd (\"HHDL\") co-venturers are unlikely to contribute their 14.365% share of current cash calls pertaining to HH-2/2z drilling, HH-1/HH-2z testing and the production-related costs detailed above.\n \nConsequently, and in addition to the above, the net Proceeds will be used to fund any potential shortfall from the HHDL partners. In this respect, the Company has also submitted a proposal to its HHDL partners to use part of the Proceeds to fully fund their current cash call obligations in return for a commensurate dilution of their holding in HHDL. UKOG owns a 77.9% controlling interest in its HHDL subsidiary, which holds a 65% operated interest in the Horse Hill oil field and licences.\n \nIt should also be noted that UKOG's wholly owned subsidiary, UKOG (137/246) Ltd, which holds a 35% direct interest in the Horse Hill oil field and surrounding licences, will continue to fund its full share of current and future Horse Hill costs. UKOG's overall interest in the field and licences totals 85.635%.\n \nAdmission and Settlement\n \nApplication will be made for the Placing Shares to be admitt...