Onshore oil junior UK Oil & Gas Investments PLC (LON:UKOG) has raised £6.5mln with a new share placing, with cash proceeds backing the group’s growth plans.
UKOG is issuing 812.5mln new shares, priced at 0.8p each.
The capital will support the near-term growth strategy to further develop its leading position in the Kimmeridge Limestone oil play and five conventional discoveries in the Weald basin.
It starts with a planned well at the group’s wholly-owned Broadford Bridge project.
"This fundraising, the largest in the company's history, has illustrated great confidence in our strategy to deliver near-term commercial production from both the new Kimmeridge Limestone play and our interests in five conventional discoveries in the Weald Basin,” said Stephen Sanderson, UKOG executive chairman.
“The company can now proceed with confidence to implement the first elements of this strategy, commencing with the drilling and extended well testing of our 100% owned Broadford Bridge-1 Kimmeridge Limestone well.
“Broadford Bridge will start our planned 18-month operational journey that could be truly transformational for the company.
“There are exciting times ahead."