The Weald-based exploration company, UK Oil and Gas Investments Plc, announced today it was considering raising funds.
In a statement to shareholders, it said :
“The Company is progressing discussions and should any arrangement be finalised a further announcement will be made.
“Terms including amount and pricing are to be agreed and there can be no certainty a transaction will be finalised.”
UKOG referred in the statement to media speculation. Earlier today, the website ShareProphets said UKOG was “sounding out investors about a £5m placing” and was “struggling to find any demand”.
UKOG shares fell on this afternoon’s statement. At one point, they were down 29% at 0.95p. At the close of trading, they had recovered to 1.08p, down 13% on the day.
UKOG has interests in southern England in Surrey, West Sussex, Isle of Wight and Hampshire. Shareholders have been expressing concern about the lack of news about final go-ahead for flow testing at Horse Hill near Gatwick.
In November 2017, the company announced a £10m loan with Cuart Investments PCC Ltd and YA II PN Ltd. The agreement allows the investors to convert tranches of the loan to ordinary shares, with a limit of £3m per quarter. The most recent loan conversion was on 4 June 2018. The par value outstanding on the loan is £3.75m.