Weald-based UK Oil & Gas plc (UKOG) announced this morning it has raised £3m to spend in Turkey.
The funds were raised in a placing of more than 3 billion new shares.
UKOG said in a statement the money would funds further seismic testing and a new appraisal well in the Resan licence in Turkey. The well was expected to produce oil in the first half of next year, UKOG said.
This is the most recent of a series of placings to raise money for operations in Turkey. UKOG raised £1.5m in July 2022 and a further £5m in July 2021.
The company said today:
“The placing has been undertaken to provide the Company with a source of general working capital and to help deliver the Company’s previously stated near term goals of completing the Phase 2 Turkey seismic programme and the subsequent drilling of a new appraisal well in the Basur oil discovery, anticipated to be able to add near-term oil production to the Company in H1 2023.
The shares were issued at 0.0875p, a 20% discount on the previous closing price.
UKOG’s share price at the time of writing was down more than 18% at 0.09p.
Following the placing, total voting rights in UKOG now stand at more than 21 billion (21,096,376,104).
New finance officer
UKOG also announced it appointed a new chief finance officer.
Guzyal Mukhametzhanova replaces Matt Gormley, who is leaving the company.
Ms Mukhametzhanova has worked for KPMG’s energy and natural resources practice and JKX Oil and Gas Limited, where she was group financial controller and finance director.
Her role at UKOG is a non-board position, the company said.