UK Oil & Gas PLC (AIM:UKOG) shares were on the back foot, falling 22% in early deals, after it has announced a new equity raise, bringing in £520,000 through a placing of new shares, to support ongoing funding needs for its hydrogen projects.
The placing was priced at 0.016 pence per share, and it brings UKOG's total new investment secured since early October to more than £5 million.
The company said the proceeds will accelerate its technical and economic studies and support a new collaboration between its UK Energy Storage subsidiary and a second regional hydrogen pipeline provider.
It said the work centres on its South Dorset Storage project and complements its earlier agreement with National Gas.
"These funds will assist us in carrying out our currently planned and budgeted 2026 hydrogen storage, hydrogen production and energy transition activities," said chief executive Stephen Sanderson.
"The new funding will also help us to deliver a second collaboration with a substantive regional hydrogen pipeline provider, in addition to collaboration with National Gas. These collaborations are both essential steps that will strengthen our intended application for government hydrogen storage revenue support in the coming year."
In London on Friday, UKOG shares were down 22% changing hands at 0.017p.