UK Oil & Gas PLC

("UKOG" or the "Company")

Placing and termination of convertible loan

UK Oil & Gas PLC (London AIM: UKOG) is pleased to announce that it has successfully raised gross proceeds of £0.5 million by means of a placing (the "Placing") of new Ordinary Shares (the "Placing Shares") at a price of 0.015 pence per share (the "Placing Price"). The Placing Price represents a discount of approximately 28% per cent to the Closing Price of 0.021 pence per Ordinary Share on 09 July 2024, being the latest practicable business day prior to the publication of this Announcement.

Use of Proceeds:

The Placing's proceeds will firstly be employed to repay in full the balance of the convertible funding facility with RiverFort Global Opportunities PCC Limited and YA II PN Ltd as per the Company's RNS of 21^st June 2024, and as originally announced on 28^th June 2023.

The remaining funds will be used directly to further the Company's material hydrogen storage projects by enabling the completion of necessary internal and external technical studies and reports required as part of an application for government Revenue Support in a first allocation round, currently scheduled to commence in Q3 2024 and complete by year end (see RNS 29^th May and 27^th June 2024).

The funds will also permit the Company to fully prepare and engage with further prospective strategic partners to seek, as a minimum, Letters of Support (" LOS") along the lines of those recently furnished by Sumitomo and SGN, such LOS being a necessary requirement for any successful allocation award (see RNS 29^th May and 27^th June 2024).

Placing Summary

·    The Placing raised £500,000 (before expenses) through the issue of 3,333,333,333 Placing Shares at the Placing Price.

·    The net proceeds of the Placing will be used as described above.

·    Participants in the Placing have subscribed on the basis of the customary terms and conditions of the Placing.

The Placing

The Company will issue 3,333,333,333 Placing Shares, to raise gross proceeds of £500,000 to participants in the Placing. The Placing Shares will be admitted ("Admission") to trading on the AIM market ("AIM") of London Stock Exchange plc ("LSE") on or around 18 July 2024. CMC Markets UK Plc ("CMC Markets"), trading as CapX, acted as the Company's sole placing agent in respect of the Placing.

Stephen Sanderson UKOG's Chief Executive commented:

"This Placing permits the full removal of the convertible loan, which should then enable the significant progress we have made in delivering our material hydrogen storage projects to be more fully reflected and sustained in our share price. The two recently announced Letters of Support from major infrastructure players in the UK hydrogen space, Sumitomo and SGN, demonstrate our project's credibility, with SGN stating our Dorset project as "essential for decarbonising the Solent Cluster and Southern England"."

Placing Information

The Placing has not been underwritten by CMC and is conditional inter alia on the placing agreement dated 09 July 2024 between the Company and CMC (the "Placing Agreement") not having been terminated or breached and Admission of shares to trading. The Placing has been conducted utilising the Company's existing share authorities and the Placing Agreement includes customary terms and conditions.  

The Placing Shares will be issued, credited as fully paid, and will rank pari passu with the existing Ordinary Shares in issue in the capital of the Company, including the right to receive all dividends and other distributions (if any) declared, made or paid on or in respect of such shares after the date of their issue.

Admission to trading

Application will be made to the AIM for Admission, which is expected to become effective and dealings in the Placing Shares to commence at, 8.00 a.m. on or around 18^th July 2024.

The total voting rights in the Company is therefore 8,167,456,073 and Shareholders may use this figure as the denominator by which they are required to notify their interest in, or change to their interest in, the Company under the Disclosure Guidance and Transparency Rules.

For further information, please contact:

UK Oil & Gas plc

Stephen Sanderson/ Allen D Howard/ Guzyal Mukhametzhanova                            Tel: 01483 941493

WH Ireland Ltd (Nominated Adviser and Broker)                                                            

James Joyce / Andrew de Andrade/James Bavister                                                          Tel: 020 7220 1666

Communications

Brian Alexander                                                                                                                                                Tel: 01483 941493  

The information contained within this announcement is deemed by the Company to constitute inside information under UK MAR