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.
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.