Industry

UKOG issues 262m shares to complete Horse Hill equipment purchase

UK Oil &Gas has issued more than 262 million shares to pay the final instalment of the cost of surface production equipment at its Horse Hill oil site in Surrey.

Horse Hill oil site in Surrey, 4 May 2020. Photo: Used with the owner’s consent

The issue brings the total number of UKOG ordinary shares to more than 13 billion.

The company bought the equipment from P W Well Test Ltd in June 2020 for £1.65m, to be paid in three equal instalments of £550,000. At the time, UKOG said the purchase would reduce operating costs by $4 a barrel.

The first payment in July 2020 was in equal amounts of cash and UKOG shares (131 million). The second instalment in February 2021 was made through the issue of more than 412 million shares.

Today’s issue is likely to be admitted to the AIM market of the London Stock Exchange on or around 1 June 2021.

At the close of trading, UKOG shares were down 6.75% at 0.19p.

7 replies »

  1. Saving $4 a barrel is about $400 a week, how long will it take to recover the £1.6 million paid for PW scrap ?

  2. Nope, Jono. You have the typical anti maths. issue.

    Looks as if your days and weeks are mixed up.

    Standard fake news.

  3. Looks like they’re strapped for cash, having to increase the number of shares in order to pay. Probably issuing new shares to ensure there’s enough cash left in the pot to pay the directors. Rumour hath it that SS doesn’t have any shares; wise man.

  4. Well, Malcolm, they could have issued more shares to raise cash, and then pay!

    I think you will find SS has been quite open about the way expenditure will be funded. Seems to excite you antis but the shareholders still seem to be buying the shares knowing how expenditure will be funded until the company is profitable. Just like they do in many, many AIM companies.

  5. Well, Jono, you have tried that one before, as well as the fake news. (Today is another day, following yesterday. You add a few more on, and you have a week!)

    The answer is that not all comments are from shareholders, very few shareholders are represented within that chat, and there are always a few shareholders who think they could do better. It has been discussed before on some sites. Will it happen? Very unlikely. I suspect the majority of shareholders are supportive of SS attempting to accelerate revenue by the focus upon Turkey. For the few shareholders who didn’t understand they would pay for that, then they really should just concentrate upon the Lottery.

    I would suggest you avoid an outlay on a footie season ticket. You would only find you were surrounded by those wanting the Board and the Manager replaced. Some people just require something to whinge about, Jono.

  6. imo it is going to be a turkey shoot unless they raise the cash via a placing so it all rests on the result of the GM or it’s back to YA cap in hand and we all know what that means. How many death spirals will that be?

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