UK Oil & Gas Raises GBP2.0 Million Via Placing For Horse Hill Works

(Alliance News) - UK Oil & Gas PLC said Monday it has raised GBP2.0 million through a share ...

Alliance News 2 December, 2019 | 2:43PM
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(Alliance News) - UK Oil & Gas PLC said Monday it has raised GBP2.0 million through a share placing, which will go towards accelerating the works required to bring wells Horse Hill-1 and Horse Hill-2z into stable oil production.

The oil & gas firm issued 235.3 million shares at a price of 0.85 pence per share, reflecting a 15% discount to its closing price on Friday, which was 1.02p.

Proceeds will go towards works to bring both wells into oil production, including long-lead time gas utilisation and facilities.

In addition, following recent discussions, UK Oil & Gas said its co-venturers in Horse Hill Developments Ltd are unlikely to contribute their 14% share of current cash calls pertaining to well drilling, testing or production costs.

UK Oil & Gas currently holds an 86% stake in the Horse Hill oil field. Among its partners are London-listed Alba Mineral Resources PLC, which holds a 12% stake in Horse Hill.

Shares in UK Oil & Gas - which is headquartered in London - were down 6.4% at 0.959p on Monday. Alba shares were 4.7% lower at 0.16p.

As a result of these discussions, proceeds will also go towards funding any potential shortfall from its partners. In addition, UK Oil & Gas has proposed to its Horse Hill partners to use part of the proceeds to fund their cash call obligations in return for a dilution of their holding in Horse Hill Developments.

Following this, UK Oil & Gas will have 6.80 billion shares issued overall.

By Dayo Laniyan; dayolaniyan@alliancenews.com

Copyright 2019 Alliance News Limited. All Rights Reserved.

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Securities Mentioned in Article

Security Name Price Change (%) Morningstar
Rating
Alba Mineral Resources PLC 0.17 GBX 0.00 -
UK Oil & Gas PLC 0.93 GBX -2.63 -

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