An UK Oil & Gas share offer has raised just a tenth of the target funds, the company has reported.
Earlier this month, UKOG said it was offering more than 2.6 billion shares which would have raised £4.7m if they had all been taken up.
Yesterday, the company announced the offer had raised £462,554 from the sale of nearly 257 million shares.
The offer increases the number of UKOG shares to more than 16.2 billion shares.
At the time of writing, the share price is 0.17p, a fall of 4.78% over the past five days.
The shares, available only to qualifying shareholders, had been offered at 0.18p, which UKOG said was a discount of about 22%. But by the time the offer opened the company’s share price had fallen to or below this level.
A letter accompanying the offer said UKOG aimed to raise money from the offer for its operations in the Basur Resan oil licence in Turkey.
It also said the company planned to fund what were described as “regulatory works at Horse Hill”, its oil production site in Surrey. There were additional ongoing licence obligations and work related to planning applications to drill on the Isle of Wight and at Loxley, near Dunsfold in Surrey, UKOG said.
The letter said UKOG would require “further funds in the near future” to fund its obligations in Turkey and any new licences that may be awarded to the company. With its American partner, UKOG has applied for a further three Turkish licences.
Earlier this month, UKOG raised £5m in a placing, which prompted a fall in the share price to 0.18p.