UK Oil & Gas plc announced today it had raised £2.2m to fund initial operations in its new interest in the Resan oil exploration project in Turkey.
The money was raised through a placing of 1,374m shares. This takes the total number of shares in UKOG to 12,474,385,050.
The company’s share price ended the day down 15.79% at 0.16p.
In July 2020, UKOG made an initial agreement to take a 50% interest in the Resan Licence, operated by Aladdin Middle East Ltd.
The company said today the proceeds of the placing would fund UKOG’s share of initial operations costs in Resan, including the purchase of long-lead drilling equipment, construction of a drilling pad and preparations for acquisition of seismic data.
UKOG said it was in the final stages of concluding final agreements. If these were not signed, the money would be used instead to develop existing UK assets, UKOG said.
This is UKOG’s second placing so far this year. A £4.2m placing in June 2020 repaid the loan with Riverfort Global Opportunities PCC Limited and YA II PN Ltd and bought previously rented surface production equipment at the Horse Hill oil site in Surrey.