Industry

UKOG shares fall on £2m fundraising for Horse Hill

191026 HH ProtestSign3 DoD

Protest sign on access road to Horse Hill well site. 26 October 2019. Photo: DrillOrDrop

Shares in UK Oil & Gas closed down more than 4% on news that the company had raised £2m in a share placing, snapped up by a single investor.

In a statement, UKOG said it had offered more than 235,000,000 shares because its partners at the Gatwick Gusher site, at Horse Hill in Surrey, were unlikely to contribute their share of costs.

The Evening Standard reported today that UKOG refused to confirm whether Doriemus and Alba Minerals had dropped out of Horse Hill.

The placing was offered at 0.85p a share –a 15% discount on the value on the previous day of trading. Shares ended the day at 0.98p.

UKOG said the proceeds of the placing would be used for work needed to bring the original Horse Hill well, HH-1, and the new sidetrack, HH-2z, into “stable long-term oil production”.

It said:

“[the] 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.”

UKOG said the funds would cover any potential shortfall from the partners. It had proposed that their stake in the operating company, Horse Hill Developments Limited, would be reduced.

UKOG announced last week it had completed drilling HH-2z and was now preparing to test the well and continue long-term tests on HH-1 well.

9 replies »

  1. apart from the problem with the math one wonders if the existing investors know more about the prospects than this new “snapper up” of shares at a 15% discount.
    I wonder if the share price is now set for a longer period of flatline. One begins to feel a bit sorry for shareholders whose interests are clearly not as high on the priorities as they might wish.

  2. Wonder why someone was so keen to “snap” up the opportunity?

    I suspect existing investors know more about the prospects than some others, who constantly show their ignorance, PD. Maybe in Dunsfold people are so wealthy they do not do due diligence before handing over £2m?

    Hope they manage to get the gas being generated turned into electricity as a result, with low temperatures across the South now triggering emergency plans to provide warm housing for those sleeping on the streets.

  3. If you increase the number of shares and the company value stays roughly the same then the share price will adjust accordingly i.e. go down to the new value.

    If a company buys back shares and takes them out of the market the reverse happens.

    Not sure why this is newsworthy?

  4. You really have to hand it to these people. They even have to secure their signs with material made from???? Fossil fuels!!!

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