Financial Statements

Consolidated statement of comprehensive income
for year ended 30 September 2025

	Notes	30 Sep 2025 £'000		30 Sep 2024 (restated)* £'000
REVENUE	7	432		1,110
Cost of sales
Depletion, Depreciation and Amortisation		(29)		(387)
Other Cost of Sales		(423)		(912)
Gross loss		(20)		(189)
Operating expenses
Administrative expenses		(2,636)		(1,716)
Impairment of oil and gas assets	13	(121)		(3,603)
Impairment of exploration and evaluation assets	12	(227)		(32,544)
Impairment of development assets	12	(920)		(266)
Other income		29		-
Foreign exchange gain		-		1
Operating loss	6	(3,896)		(38,318)
Net finance cost	9	(202)		(172)
Loss before taxation		(4,098)		(38,490)
Taxation	10		-	-
Retained loss for the year			(4,098)	(38,490)
Retained loss attributable to
Equity holders of the Parent			(3,757)	(37,750)
Non-Controlling Interests			(341)	(739)
Total Comprehensive Loss			(4,098)	(38,490)

 

There are no other comprehensive income or expenses during the two reported periods to disclose.

All operations are continuing.

	Note	Pence	Pence (restated)
Earnings per share
Basic and diluted	11	(0.043)	(0.87)

 

The accompanying accounting policies and notes form an integral part of these financial statements.

 

* The comparative information has been restated. Details of the prior period restatement are set out in Note 3. 

 

Consolidated statement of financial position
as at 30 September 2025

	Notes	30 Sep 2025 £'000	(Restated)* 30 Sep 2024 £'000	(Restated)* 30 Sep 2023 £'000
ASSETS Non-current assets
Exploration and evaluation assets	12	-	-	31,704
Development assets	12	335	999	1,266
Oil & Gas properties	13	-	693	2,276
Property, Plant & Equipment	13	2	13	1,439
Total non-current assets		337	1,705	36,685
Current assets
Assets held for sale	25	601	-	-
Inventory	15	-	2	18
Trade and other receivables	16	166	614	754
Cash and cash equivalents	17	32	1,039	1,868
Total current assets		799	1,655	2,640
Total assets		1,136	3,361	39,325
LIABILITIES
Current liabilities
Liabilities associated with assets held for sale	25	(201)	-	-
Trade and other payables	18	(1,569)	(1,268)	(635)
Borrowings	19	(3,462)	(3,310)	(4,784)
Total current liabilities		(5,231)	(4,578)	(5,419)
Non-current Liabilities
Provisions	20	(1,591)	(1,254)	(1,451)
Total non-current liabilities		(1,591)	(1,254)	(1,451)
Total liabilities		(6,822)	(5,832)	(6,869)
Net (liabilities) / assets		(5,684)	(2,471)	32,456
Equity
Share capital	21	14,853	14,846	13,808
Share premium account		114,643	113,766	110,915
Own shares held in trust		(326)	(326)	-
Share based payment and other reserve	22	-	82	2,039
Accumulated losses		(132,453)	(128,778)	(92,984)
		(3,283)	(410)	33,778
Non-controlling interest		(2,401)	(2,061)	(1,322)
Total shareholders' equity		(5,684)	(2,471)	32,456

 

The accompanying accounting policies and notes form an integral part of these financial statements. These financial statements were approved by the Board of Directors on 1 May 2026 and are signed on its behalf by:

Stephen Sanderson                             Allen Howard
Director                                                 Director

* The comparative information has been restated. Details of the prior period restatement are set out in Note 3. 

 

 

 

Company statement of financial position
as at 30 September 2025

	Notes	30 Sep 2025 £'000	(Restated)* 30 Sep 2024 £'000	(Restated)* 30 Sep 2023 £'000
ASSETS
Non-current assets
Exploration and evaluation assets		-	-	527
Development assets	12	152	353	490
Investment in subsidiary companies	14	197	197	26,242
Property, Plant and Equipment	13	2	5	1,412
Total non-current assets		351	556	28,671
Current assets
Trade and other receivables	16	407	617	172
Loans to subsidiary companies	16	1,464	1,282	13,157
Cash and cash equivalents	17	15	751	497
Total current assets		1,886	2,649	13,826
TOTAL ASSETS		2,237	3,205	42,497
LIABILITIES
Current liabilities
Loans from subsidiary companies	18	(410)	(264)	-
Trade and other payables	18	(1,166)	(657)	(254)
Borrowings		-	-	(1,540)
Total Current Liabilities		(1,576)	(922)	(1,794)
TOTAL LIABILITIES		(1,576)	(922)	(1,794)
Net Assets		661	2,283	40,703
Shareholders' Equity
Share capital	21	14,853	14,846	13,808
Share premium account		114,643	113,766	110,915
Share based payment and other reserves		-	82	2,039
Accumulated losses		(128,834)	(126,411)	(86,059)
Total shareholders' equity		661	2,283	40,703

 

As permitted by section 408 of the Companies Act 2006, the profit and loss account of the parent company has not been separately presented in these accounts. The parent company loss for the year was £2,505,000 (2024: loss £42,309,000).

These financial statements were approved by the Board of Directors on 1 May 2026 and are signed on its behalf by:

Stephen Sanderson             Allen Howard
Director                                 Director

 

Registered number: 052126625

The accompanying accounting policies and notes form an integral part of these financial statements.

 

* The comparative information has been restated. Details of the prior period restatement are set out in Note 3. 

 

 

Consolidated statement of changes in equity 
for the year ended 30 September 2025

 

	Share capital £'000	Share premium £'000	Share based payment reserve £'000	Own shares held in trust	Accumulated losses £'000	Total £'000	Non-controlling Interests £'000	Total £'000
Balance at 30 September 2023 (as previously stated)	13,808	110,915	2,039	-	(92,753)	34,009	(1,322)	32,687
Prior period adjustment*					(231)	(231)		(231)
Balance at 30 September 2023 (restated)	13,808	110,915	2,039	-	(92,984)	33,778	(1,322)	32,456
Loss for the year (restated)	-	-	-	-	(37,750)	(37,750)	(739)	(38,490)
Total comprehensive income (restated)	-	-	-	-	(37,750)	(37,750)	(739)	(38,490)
Issue of shares	682	1,967		(326)	-	2,324	-	2,324
Share options expiry	-	-	(1,957)	-	1,957	-	-	-
Loan conversion	356	884	-	-	-	1,240	-	1,240
Total transactions with owners	1,038	2,852	(1,957)	(326)	1,957	3,564	-	3,564
Balance at 30 September 2024 (restated)	14,846	113,766	82	(326)	(128,778)	(410)	(2,061)	(2,471)
Loss for the year	-	-	-	-	(3,757)	(3,757)	(341)	(4,098)
Total comprehensive income	-	-	-	-	(3,757)	(3,757)	(341)	(4,098)
Issue of shares	7	877	-	-	-	884	-	884
Warrants expired	-	-	(82)	-	82	-	-	-
Total transactions with owners	7	877	(82)	-	82	884	-	884
Balance at 30 September 2025	14,853	114,643	-	(326)	(132,453)	(3,283)	(2,401)	(5,684)

* The comparative information has been restated. Details of the prior period restatement are set out in Note 3. 

 

Company statement of changes in equity
for the year ended 30 September 2025

	Share capital £'000	Share premium £'000	Share based payment reserve £'000	Accumulated losses £'000	Total £'000
Balance at 30 September 2023 (as previously stated)	13,808	110,915	2,039	(85,910)	40,852
Prior period adjustment	-	-	-	(149)	(149)
Balance at 30 September 2023 (restated)	13,808	110,915	2,039	(86,059)	40,703
Loss for the year (restated)	-	-	-	(42,309)	(42,309)
Total comprehensive income (restated)	-	-	-	(42,309)	(42,309)
Issue of shares	682	1,967	-	-	2,649
Loan conversion	356	884	-	-	1,240
Share options expired	-	-	(1,957)	1,957	-
Total transactions with owners	1,038	2,851	(1,957)	1,957	3,889
Balance at 30 September 2024 (restated)	14,846	113,766	82	(126,411)	2,283
Loss for the year	-	-	-	(2,505)	(2,505)
Total comprehensive income	-	-	-	(2,505)	(2,505)
Issue of shares	7	877	-	-	884
Shares held in trust	-	-	-	-	-
Warrants expired			(82)	82	-
Total transactions with owners	7	877	(82)	82	884
Balance at 30 September 2025	14,853	114,643	-	(128,834)	661

* The comparative information has been restated. Details of the prior period restatement are set out in Note 3. 

 

 

Consolidated statement of cash flow
for the year ended 30 September 2025

	2025 £'000	(Restated)* 2024 £'000
Cash flows from operating activities
Loss before tax	(4,098)	(38,490)
Impairment of exploration and evaluation assets	227	32,544
Depletion & impairment of oil and gas assets	150	3,990
Impairment of development assets	920	266
Movement in decommissioning provision (Note 20)	449	(1,119)
Inventories	-	16
Decrease in Trade & other receivables	425	140
Increase in Trade & other payables	340	633
Finance costs	202	172
Adjustment for non-cash operating income	-	13
Net cash outflow from operating activities	(1,386)	(1,835)
Cash flows from investing activities
Expenditures on exploration & evaluation and development assets	(483)	(840)
Expenditures on oil & gas properties	(9)	(61)
Expenditures on plant, property & equipment	(7)	(2)
Net cash outflow from investing activities	(499)	(903)
Cash flows from financing activities
Proceeds from issue of share capital	884	2,342
Repayment of convertible loan	-	(330)
Repayment of shareholders loan	-	(103)
Net cash inflow from financing activities	884	1,909
Net change in cash and cash equivalents	(1,001)	(829)
Cash and cash equivalents at beginning of the period	1,039	1,868
Cash and cash equivalents at end of the period	38**	1,039

 

* The comparative information has been restated. Details of the prior period restatement are set out in Note 3. 

** Includes £6k of cash balances classified within assets held for sale (see Note 25).

 

Company statement of cash flow
for the year ended 30 September 2025

	2025 £'000	(Restated)* 2024 £'000
Cash flows from operating activities
Loss before tax	(2,505)	(42,309)
Depletion & impairment	551	40,214
E&E impairment	195	788
Decrease in trade & other receivables	210	(143)
Increase in trade & other payables	506	404
Interest income	-	(903)
Adjustment for non-operating income	(13)	1
Net cash outflow from operating activities	(1,056)	(1,948)
Cash flows from investing activities
Expenditure on E&E and development assets	(350)	(261)
Expenditures on property, plant & equipment	-	(2)
Loan (to) / from subsidiaries	(213)	484
Net cash (outflow)/inflow from investing activities	(563)	221
Cash flows from financing activities
Proceeds from issue of share capital	884	2,342
Repayment of convertible loan	-	(330)
Loan transaction fees		(30)
Net cash inflow from financing activities	884	1,982
Net change in cash and cash equivalents	(736)	254
Cash and cash equivalents at beginning of the period	751	497
Cash and cash equivalents at end of the period	15	751

 

* The comparative information has been restated. Details of the prior period restatement are set out in Note 3. 

1.    Corporate information

The consolidated financial statements of UK Oil & Gas Plc (the Company) and its subsidiaries (collectively, the Group), for the year ended 30 September 2025 were authorised for issue by the directors on 1 May 2026.  UK Oil & Gas Plc (the Company & parent) is a public limited company incorporated in England and Wales under the UK Companies Act and listed on the Alternative Investment Market (AIM). The registered office is located at The Broadgate Tower, 20 Primrose Street, London EC2A 2EW.

The Group is engaged in oil production and oil & gas exploration and evaluation (see Note 5) and salt cavern hydrogen storage projects in South Dorset and East Yorkshire. Information on the Group's structure is provided in Note 14 and information on other related parties is provided in Note 27.

2.    Principal accounting policies

Basis of preparation

The consolidated financial statements of the UK Oil & Gas Plc (the Company) and subsidiaries (the Group) have been prepared in accordance with UK- Adopted International Accounting Standards in conformity with the requirements of the Companies Act 2006 as they apply to the Group for the year ended 30 September 2025.

The accounting policies have been applied consistently throughout the preparation of these financial statements, the financial report is presented in Pound Sterling (£) and all values are rounded to the nearest thousand pounds (£'000) unless otherwise stated. The consolidated financial statements provide comparative information in respect of the previous period.

Subsidiary undertakings exempt from audit

UK Oil & Gas Plc has guaranteed the liabilities of the subsidiaries listed below under section 479A of the Companies Act 2006 in respect of the year ended 30 September 2025.

·      UK Energy Storage Ltd - 14108327

·      UKOG (234) Ltd - 07055133

·      UKOG (GB) Limited - 04050227

·      UKOG (137/246) Holdings Ltd - 09010542

·      UKOG (137/246) Ltd - 06807023

·      UK Oil & Gas Investments Ltd - 11252712

·      UKOG (Turkey) Ltd - 10212262

·      UK Geothermal Ltd - 13386906

New and amended standards and interpretations

There is no material impact on the financial statements following the adoption of new standards and interpretations.

New and amended standards, and interpretations issued and effective for the financial year beginning 1 October 2024

There were no new standards, amendments or interpretations effective for the first time for periods beginning on or after 1 October 2024 that had a material effect on the Group or Company financial statements.

New standards, amendments and interpretations in issue but not yet effective

At the date of approval of these financial statements for the year ended 30 September 2025, the following standards and amendments had been issued by the International Accounting Standards Board ("IASB") but were not yet effective for the period and have not been early adopted by the Group:

·      Amendments to IFRS 9 and IFRS 7 Financial Instruments: Classification and Measurement
(effective for annual periods beginning on or after 1 January 2026).
These amendments modify certain requirements relating to the classification, derecognition, presentation and disclosure of financial instruments.

·      IFRS 18 Presentation and Disclosure in Financial Statements
(effective for annual periods beginning on or after 1 January 2027).
This new standard will replace IAS 1 and introduces revised presentation and disclosure requirements, including new defined subtotals in the statement of profit or loss.

·      IFRS 19 Subsidiaries without Public Accountability: Disclosures
(effective for annual periods beginning on or after 1 January 2027).
This standard permits eligible subsidiaries to apply reduced disclosure requirements while continuing to apply full IFRS recognition and measurement principles.

The Directors do not expect the adoption of these standards and amendments to have a material impact on the Group's consolidated financial statements, although additional disclosures may be required in future periods.

(a)     Going concern

The accounts have been prepared on a going concern basis.

The Directors note the losses and cash outflows incurred by the Group for the year ended 30 September 2025. In assessing the Group's ability to continue as a going concern, the Directors have prepared detailed cash flow forecasts covering the period to 1 May 2027. These forecasts incorporate assumptions regarding anticipated production levels and operating costs, expected revenue streams, and access to external funding. The Board recognises that forecasts are inherently subject to uncertainty and may be affected by events outside the Group's control.

At 30 September 2025, the Group was in a net liability position. Notwithstanding this, the Directors considered the Group's ability to actively manage its cost base and liabilities, including the timing of payments, working capital management and the deferral of discretionary expenditure where appropriate. Subsequent to the year end, during October and November 2025, the Group successfully raised £5.0 million of funding, materially strengthening its liquidity position. This funding provides additional headroom to support ongoing operations and the continued progression of the Group's Clean Power and hydrogen storage activities.

However, the forecasts remain dependent on a number of key assumptions, including the timing of future revenue generation, and the availability of additional funding if required. As a result, these conditions indicate the existence of a material uncertainty that may cast significant doubt on the Group's ability to continue as a going concern. Nevertheless, after considering the Group's cash flow forecasts, the actions available to management and the post year-end funding raised, the Directors have a reasonable expectation that the Group will have adequate resources to continue in operational existence for the foreseeable future.

Accordingly, the financial statements for the year ended 30 September 2025 have been prepared on a going concern basis.

(b)     Basis of consolidation

Subsidiaries are all entities (including structured entities) over which the Group has control. The Group controls an entity when the Group is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. Subsidiaries are fully consolidated from the date on which control is transferred to the Group. They are deconsolidated from the date that control ceases. All intercompany transactions and balances between Group companies, including unrealised profits arising from them, are eliminated in full.

At 30 September 2025, the Group comprised the Company and entities controlled by UK Oil & Gas Plc (its subsidiaries) (Note 14).

(c)     Business combinations

The acquisition method of accounting is used to account for all business combinations, regardless of whether equity instruments or other assets are acquired. The consideration transferred for the acquisition of a subsidiary comprises the:

·      fair values of the assets transferred

·      liabilities incurred to the former owners of the acquired business

·      equity interests issued by the group

·      fair value of any asset or liability resulting from a contingent consideration arrangement, and

·      fair value of any pre-existing equity interest in the subsidiary.

Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are, with limited exceptions, measured initially at their fair values at the acquisition date. The group recognises any non-controlling interest in the acquired entity on an acquisition-by-acquisition basis either at fair value or at the non-controlling interest's proportionate share of the acquired entity's net identifiable assets. Acquisition-related costs are expensed as incurred.

(d)     Joint arrangements

Some of the Group's licence interests are held jointly with others under arrangements whereby unincorporated and jointly controlled ventures are used to explore, evaluate and ultimately develop and produce from its oil & gas interests. The Group's share of assets, liabilities, income and expenditure of these joint operations, have been classified in the appropriate balance sheet and income statement headings, except where its share of such amounts remain the responsibility of another party in accordance with the terms of carried interests.

When the Group, acting as an operator or manager of a joint arrangement, receives reimbursement of direct costs recharged to the joint arrangement, such recharges represent reimbursements of costs that the operator incurred as an agent for the joint arrangement and therefore have no effect on profit or loss.

(e)     Revenue

Revenue comprises the invoiced value of goods and services supplied by the Group, excluding value added tax and trade discounts. Revenue is recognised when control passes to the customer and there is no unfulfilled obligation that could affect the customer's acceptance of the goods. In the case of oil and petroleum products, this generally occurs when the product is physically transferred into a vessel, pipe or other delivery mechanism.

Revenue from the production of oil, from fields in which the Group has an interest with other producers, is recognised based on the Group's working interest and the terms of the relevant production sharing contracts. Differences between oil lifted and sold and the Group's share of production are not significant.

(f)      Intangible exploration and evaluation assets

The Group accounts for exploration and evaluation costs in accordance with the requirements of IFRS 6 Exploration for and Evaluation of Mineral Resources as follows:

·      Pre-licence costs (costs incurred prior to obtaining the legal rights to explore an area) are expensed immediately to the Income Statement.

·      Exploration licence and leasehold land and property acquisition costs are capitalised in intangible assets.

·      Licence costs paid in connection with a right to explore in an existing exploration area are capitalised and amortised over the term of the permit.

·      Costs directly associated with an exploration well are capitalised as exploration and evaluation intangible assets until the drilling of the well is complete and the results have been evaluated. These costs include directly attributable employee remuneration, materials and consumables, drilling (including coring and sampling), evaluation of technical feasibility and commercial viability (including appraisal drilling and production testing).

Exploration and evaluation assets are assessed for impairment at each reporting date, before reclassification and whenever facts and circumstances suggest that they may be impaired. If no future activity is planned, the licence has been relinquished or has expired, or where development is likely to proceed but there are indications that the exploration and evaluation asset costs are unlikely to be recovered in full either by development or through sale, the carrying value of the asset is written off to the Income Statement.

(g)     Property, plant and equipment - oil & gas properties

Oil & gas properties are stated at cost, less accumulated depreciation and accumulated impairment losses.

The initial cost of an asset comprises its purchase price or construction cost, any costs directly attributable to bringing the asset into operation, the initial estimate of the decommissioning obligation and, for qualifying assets (where relevant), borrowing costs. The purchase price or construction cost is the aggregate amount paid and the fair value of any other consideration given to acquire the asset. The capitalised value of any associated finance lease is also included within property, plant and equipment.

Oil & gas properties are depreciated/amortised on a unit-of-production basis over the total proved developed and undeveloped reserves of the field concerned. The unit-of-production rate calculation for the depreciation/amortisation of field development costs takes into account expenditures incurred to date, together with sanctioned future development expenditure.

The Group's interests in oil & gas properties are assessed for indicators of impairment including events or changes in circumstances which indicate that the carrying value of an asset may not be recoverable. Any impairment in value is charged to the Income Statement.

Other property, plant and equipment

Other property, plant and equipment is stated at cost to the Group less accumulated depreciation. These assets are generally depreciated on a straight-line basis over their estimated useful lives, depending on the type of asset.

Decommissioning assets

A decommissioning asset is recognised in the appropriate category of the Group's non-current assets (intangible exploration and evaluation assets and property, plant and equipment) depending on the underlying accounting treatment for the operations or asset leading to the associated decommissioning provision. The asset is assessed for impairment as necessary and otherwise depleted on a straight-line basis over the estimated period to future removal of production facilities or site restoration.

(h)     Intangible assets

Intangible assets are recognised at cost less accumulated amortisation and impairment losses.

The Group's hydrogen storage projects are currently in the development phase and are not amortised until the assets are available for use.

Development expenditure is capitalised as an intangible asset only when the criteria set out in IAS 38.57 are met.

·      Technical feasibility of completing the asset

·      Intention to complete and use or sell the asset

·      Ability to use or sell the asset

·      Probable future economic benefits

·      Availability of adequate technical, financial and other resources

·      Ability to reliably measure the expenditure attributable to the asset

Where these criteria are not fully satisfied, costs continue to be expensed as incurred.

Intangible assets with finite useful lives are amortised on a straight-line basis over their estimated useful lives and are assessed for impairment whenever there is an indication that the carrying amount may not be recoverable.

Where management determines that an intangible asset has an indefinite useful life, the asset is not amortised but is tested annually for impairment, or more frequently if indicators of impairment arise.

(i)      Decommissioning provisions

A provision for decommissioning is recognised where a liability for the removal of production facilities or site restoration exists. Provisions are measured at the present value of the amount expected to be required to settle the obligation using a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the obligation. The increase in the provision due to the passage of time is recognised as interest expense.

(j)      Segmental information

An operating segment is a distinguishable component of the Group that is involved in oil production, oil exploration or related activities, within a particular economic environment, which is subject to risks and rewards that are different from those of other segments.

Operating segments are reported in a manner consistent with internal reporting provided to the chief operating decision-maker. The chief operating decision-maker, who is responsible for allocating resources and assessing performance of the operating segments, has been identified as the Board of Directors of the Company.

(k)     Financial instruments

Financial assets

Financial assets are divided into the following categories: loans and receivables and available-for-sale financial assets. Financial assets are assigned to the different categories by management on initial recognition, depending on the purpose for which they were acquired, and are recognised when the Group becomes party to contractual arrangements. Both loans and receivables and available for sale financial assets are initially recorded at fair value.

Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. Trade receivables, most other receivables and cash and cash equivalents fall into this category of financial assets. Loans and receivables are measured subsequent to initial recognition at amortised cost using the effective interest method, less provision for impairment. Any change in their value through impairment or reversal of impairment is recognised in the income statement.

Cash and cash equivalents comprise cash on hand and short-term deposits. Any interest earned is classified as interest income within finance income.

A financial asset is derecognised only where the contractual rights to the cash flows from the asset expire or the financial asset is transferred, and that transfer qualifies for derecognition. A financial asset is transferred if the contractual rights to receive the cash flows of the asset have been transferred or the Group retains the contractual rights to receive the cash flows of the asset but assumes a contractual obligation to pay the cash flows to one or more recipients.

A financial asset that is transferred qualifies for derecognition if the Group transfers substantially all the risks and rewards of ownership of the asset, or if the Group neither retains nor transfers substantially all the risks and rewards of ownership but does transfer control of that asset.

Financial liabilities

Financial liabilities are obligations to pay cash or other financial assets and are recognised when the Group becomes a party to the contractual provisions of the instrument.

All financial liabilities initially recognised at fair value less transaction costs and thereafter carried at amortised cost using the effective interest method, with interest-related charges recognised as an expense in finance cost in the income statement. A financial liability is derecognised only when the obligation is extinguished, that is, when the obligation is discharged or cancelled or expires.

Impairment of financial assets

At the end of each reporting period, a provision is made if there is sufficient evidence that a financial asset or group of financial assets has been impaired. Provision against trade receivables is made when there is objective evidence that the Group will not be able to collect all amounts due to it in accordance with the original terms of those receivables. The amount of the write-down is determined as the difference between the asset's carrying amount and the present value of estimated future cash flows.

(l)      Inventories

Inventories are stated at the lower of cost and net realisable value. The cost of materials is the purchase cost, determined on first-in, first-out basis. The cost of crude oil and refined products is the purchase cost, the cost of refining, including the appropriate proportion of depreciation, depletion and amortisation and overheads based on normal operating capacity, determined on a weighted average basis. The net realisable value of crude oil and refined products is based on the estimated selling price in the ordinary course of business, less the estimated costs of completion and the estimated costs necessary to make the sale.

(m)   Taxation

The tax charge includes both current and deferred tax.

Current tax assets and liabilities are measured at the amount expected to be paid to or received from the tax authorities, calculated using tax rates that have been enacted or substantively enacted by the balance sheet date. Taxable profits or losses differ from the reported profit or loss before taxation in the Income Statement as it excludes items that are taxable or deductible in different periods, as well as items that are never deductible or taxable.

Deferred income taxes are calculated using the liability method on temporary differences. Deferred tax is generally provided on the difference between the carrying amounts of assets and liabilities and their tax bases. However, deferred tax is not provided on the initial recognition of goodwill, nor on the initial recognition of an asset or liability unless the related transaction is a business combination or affects tax or accounting profit.

Deferred tax on temporary differences associated with shares in subsidiaries and joint ventures is not provided if reversal of these temporary differences can be controlled by the Company and it is probable that reversal will not occur in the foreseeable future. In addition, tax losses available to be carried forward as well as other income tax credits to the Company are assessed for recognition as deferred tax assets.

No deferred tax liability was recognised as the Group has substantial brought-forward ring-fence and supplementary charge losses. These are offsetable against future tax liabilities and offsetable with the same tax authority. PPE are in entities that have the losses and any tax base differences have merely been recognised as unrecognised deferred tax losses.

Changes in deferred tax assets or liabilities are recognised as a component of tax expense in the income statement, except where they relate to items that are charged or credited directly to equity in which case the related deferred tax is also charged or credited directly to equity.

(n)     Share-based payments

The Group operates a number of equity-settled, share-based compensation plans, under which the entity receives services from employees as consideration for equity instruments (options) of the Company. The fair value of the employee services received in exchange for the grant of the options is recognised as an expense. The total amount to be expensed is determined by reference to the fair value of the options granted:

·      Including any market performance conditions;

·      Excluding the impact of any service and non-market performance vesting conditions (for example, profitability or sales growth targets, or remaining an employee of the entity over a specified time period; and,

·      Including the impact of any non-vesting conditions (for example, the requirement for employees to save).

Non-market vesting conditions are included in assumptions about the number of options that are expected to vest. The total expense is recognised over the vesting period, which is the period over which all of the specified vesting conditions are to be satisfied.

In addition, in some circumstances, employees may provide services in advance of the grant date, and therefore the grant-date fair value is estimated for the purposes of recognising the expense during the period between service commencement period and grant date.

At the end of each reporting period, the entity revises its estimates of the number of options that are expected to vest based on the non-market vesting conditions. It recognises the impact of the revision to original estimates, if any, in profit or loss, with a corresponding adjustment to equity.

When the options are exercised, the Company issues new shares. The proceeds received, net of any directly attributable transaction costs, are credited to share capital (nominal value) and share premium.

(o)     Equity

Equity comprises the following:

·      "Share capital" representing the nominal value of equity shares.

·      "Share premium" representing the excess over nominal value of the fair value of consideration received for equity shares, net of expenses of the share issue.

·      "Share based payment reserve" represents the value of equity benefits provided to employees and directors as part of their remuneration and provided to consultants and advisors hired by the Group from time to time as part of the consideration paid.

·      "Accumulated losses " represents retained profits and (losses).

·      "Own shares held in trust" represents shares held by Employee Benefit Trust

(p)     Employee Benefit Trust (EBT)

The Company has established an Employee Benefit Trust ("EBT") to facilitate the operation of its employee share incentive schemes. In accordance with IFRS 10 Consolidated Financial Statements, the EBT is consolidated as it is considered to be controlled by the Company. The assets, liabilities, income and expenses of the EBT are therefore included in the consolidated financial statements on a line-by-line basis.

Own shares of the Company held by the EBT are presented as a deduction from equity within "Own shares held in trust". No gain or loss is recognised in profit or loss on the purchase, sale, issue or cancellation of the Company's own equity instruments by the EBT. Transactions of the EBT relating to the Company's own shares are accounted for directly in equity.

(q)     Foreign currencies

The consolidated financial statements are presented in UK pound sterling, the functional currency of the Group. Transactions in other currencies are translated at the exchange rate ruling at the date of the transaction. Monetary assets and liabilities in foreign currencies are translated at the rates of exchange ruling at the balance sheet date. Non-monetary items that are measured at historical cost in a foreign currency are translated at the exchange rate at the date of the transaction. Non-monetary items that are measured at fair value in a foreign currency are translated using the exchange rates at the date when the fair value was determined.

Any exchange differences arising on the settlement of monetary items or on translating monetary items at rates different from those at which they were initially recorded are recognised in the profit or loss in the period in which they arise. Exchange differences on non-monetary items are recognised in other comprehensive income to the extent that they relate to a gain or loss on that non-monetary item taken to other comprehensive income, otherwise such gains and losses are recognised in the income statement. The Group and Company's functional currency and presentational currency is Sterling.

s) Assets held for sale (IFRS 5)

Non-current assets (or disposal groups) are classified as held for sale when their carrying amount will be recovered principally through a sale transaction rather than through continuing use, and the asset (or disposal group) is available for immediate sale in its present condition, subject only to terms that are usual and customary for sales of such assets. Classification as held for sale requires that the sale is highly probable, management is committed to a plan to sell the asset, and the sale is expected to be completed within twelve months from the date of classification.

Assets (or disposal groups) classified as held for sale are measured at the lower of their carrying amount and fair value less costs to sell. Any impairment loss arising on classification as held for sale is recognised immediately in the income statement. Once classified as held for sale, depreciation, depletion and amortisation cease.

Where an asset held for sale forms part of a disposal group, the assets and liabilities of the disposal group are presented separately within the statement of financial position. Gains or losses arising on disposal are recognised in the income statement at the date of disposal.

If the criteria for classification as held for sale are no longer met, the asset (or disposal group) is remeasured at the lower of:

·      its carrying amount before the asset was classified as held for sale, adjusted for depreciation or amortisation that would have been recognised had the asset not been classified as held for sale; and

·      its recoverable amount at the date of the subsequent decision not to sell.

t) Investments in subsidiaries

Investments in subsidiaries are recognised at cost less any accumulated impairment losses. Cost includes directly attributable transaction costs.

Where there are indicators of impairment, the carrying amount of the investment is tested for impairment in accordance with IAS 36. Any impairment loss is recognised in the income statement.

Dividend income from subsidiaries is recognised in the income statement when the Company's right to receive payment is established.

3.    Prior period restatement

During the year, the Group identified errors in:

·      the capitalisation of development expenditure under IAS 38; and

·      the measurement of decommissioning provisions under IAS 37.

These errors have been corrected retrospectively in accordance with IAS 8, and comparative information has been restated at 1 October 2023 and 1 October 2024.

Development assets

During the year, the Group's decision not to progress the Portland hydrogen storage project prompted a comprehensive review of costs across its hydrogen storage and related energy transition project portfolio. This review identified that certain costs had been recognised as development expenditure ahead of all of the recognition criteria under IAS 38.57 being met. These costs primarily related to early-stage technical evaluation, feasibility studies and project scoping activities, which should have been classified within the research phase in historic periods and expensed as incurred. Accordingly, the Group has corrected this misclassification as a prior period adjustment in accordance with IAS 8.

 

Furthermore, the Group recognised an impairment charge of approximately £0.92 million in respect of intangible assets in the current year. This primarily relates to development expenditure associated with projects that are no longer being progressed, including the Portland project. Further details of the prior period adjustment are provided in Note 3, and the impairment charge is disclosed within Note 12 Intangible Assets.

Impact of restatement

Statement of Financial Position (Consolidated)

Amounts of £231,000 and £266,000 have been recognised as adjustments to opening retained earnings at 1 October 2023 and 1 October 2024 respectively.  

£'000	As previously reported on 30 September 2024	Adjustment 1 October 2023	Adjustment 1 October 2024	Restated on 30 September 2024
Development assets	1,497	(231)	(266)	999

 

The cumulative reduction in retained earnings arising from this correction amounts to £497,000.

Statement of Profit or Loss - Year ended 30 September 2024

£'000	Adjustment
Impairment of development assets	266

 

Statement of Profit or Loss - Year ended 30 September 2023

£'000	Adjustment
Impairment of development assets	231

 

Basic and diluted loss per share for the year ended 30 September 2024 has been restated to reflect the increased loss of £266,000.

Statement of Financial Position (Company)

Amounts of £149,000 and £136,000 have been recognised as adjustments to opening retained earnings at 1 October 2023 and 1 October 2024 respectively.  

£'000	As previously reported on 30 September 2024	Adjustment 1 October 2023	Adjustment 1 October 2024	Restated on 30 September 2024
Development assets	638	(149)	(136)	353

 

The cumulative reduction in retained earnings arising from this correction amounts to £285,000.

Statement of Profit or Loss - Year ended 30 September 2024

£'000	Adjustment
Impairment of development assets	136

 

Statement of Profit or Loss - Year ended 30 September 2023

£'000	Adjustment
Impairment of development assets	149

Decommissioning provision

During the year, the Financial Reporting Council ("FRC") conducted a Corporate Reporting Review of the Group's Annual Report for the year ended 30 September 2024. As part of this review, the FRC raised queries regarding the discount rate applied in measuring the Group's decommissioning provisions under IAS 37 Provisions, Contingent Liabilities and Contingent Assets.

Having considered the points raised by the FRC, management has reassessed the discount rate applied in prior periods and concluded that it was not consistent with the requirements of IAS 37.

Accordingly, the Group has restated the comparative information to reflect the application of an appropriate discount rate, in accordance with IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors. The impact of this restatement on the Group's financial statements is presented below.

The FRC has confirmed that their enquiries have been closed. When reviewing the Group's Annual Report, the FRC has made clear the scope and limitations of its review as follows:

The review was based on the Group's Annual Report and did not benefit from detailed knowledge of the group's business or an understanding of the underlying transactions entered into. It was, however, conducted by staff of the FRC who have an understanding of the relevant legal and accounting framework. The FRC review provides no assurance that the group's annual report and accounts are correct in all material respects; the FRC's role is not to verify the information provided to it but to consider compliance with reporting requirements. Communications from the FRC are written on the basis that the FRC (which includes its officers, employees and agents) accepts no liability for reliance on them by the company or any third party, including but not limited to investors and shareholders.

Nature of the error

In prior reporting periods, the Group discounted its decommissioning obligations using rates derived from its weighted average cost of capital ("WACC"), being 16.2%.

IAS 37 requires provisions to be discounted using a pre-tax rate reflecting current market assessments of the time value of money and risks specific to the liability. Where risks are reflected within the estimated cash flows, the discount rate should reflect only the time value of money. The use of WACC was inconsistent with IAS 37 and constitutes a prior period error under IAS 8.

Correction applied

The decommissioning provision as at 30 September 2024 has been recalculated using appropriate risk-free pre-tax discount rates ranging from 3.72% to 4.16%, reflecting UK government bond yields matched to the expected timing of the related cash outflows.

The correction has been applied retrospectively.

Impact of restatement

Statement of Financial Position - As at 30 September 2024

£'000	As previously reported	Adjustment	Restated
Decommissioning provision	759	495	1,254
Decommissioning asset	19	95	114

 

Statement of Profit or Loss - Year ended 30 September 2024

£'000	Adjustment
Increase in administrative expenditure and change in estimate	450
Decrease in finance costs	(48)

 

 

4.    Significant accounting judgements, estimates and assumptions

The preparation of the Group's consolidated financial statements requires management to make judgements, estimates and assumptions that affect the reported amounts of revenues, expenses during the reporting period, and reported amounts of assets and liabilities, and the disclosure of contingent liabilities at the date of the consolidated financial statements. Estimates and assumptions are continuously evaluated and are based on management's experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. However, actual outcomes can differ from these estimates.

In particular, the Group has identified the following areas where significant judgements, estimates and assumptions are required, and where if actual results were to differ, this could materially affect the financial position of financial results reported in a future period. Further information on each of these areas and how they impact the various accounting policies are described below and in the relevant notes to the financial statements.

Judgements

Estimates and assumptions

The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year, are described below. The Group based its assumptions and estimates on parameters available when the consolidated financial statements were prepared. Existing circumstances and assumptions about future developments, however, may change due to market change or circumstances arising beyond the control of the Group. Such changes are reflected in the assumptions when they occur.

Hydrocarbon reserve and resource estimates

The Group estimates and reports hydrocarbon reserves in line with the principles contained in the SPE Petroleum Resources Management Reporting System (PRMS) framework. As the economic assumptions used may change, and as additional geological information is obtained during the operation of a field, estimates of recoverable reserves may change.

The volume of proved and probable oil & gas reserves is an estimate that affects:

·      the unit of production depreciation of producing oil & gas property, plant and equipment (see Note 13);

·      the measurement of decommissioning provisions (see Note 20);

·      impairment calculations of oil & gas properties (see Note 12).

·      Proved and probable reserves and contingent resources are estimated using standard recognised evaluation techniques. Estimates are reviewed at least annually and are regularly assessed by independent consultants. Future development costs are estimated taking into account the level of development required to produce the reserves, by reference to operators (where applicable) and internal engineers.

Recoverable value of intangible exploration and evaluation assets

The Group has capitalised intangible exploration and evaluation assets in accordance with IFRS 6. Significant judgement is required to determine whether it continues to be appropriate to carry these costs on the balance sheet and whether the assets have been impaired.

The key areas in which management have applied judgement include the Group's intention to proceed with a future work programme for a prospect or licence, the likelihood of licence and planning permission renewal, plans for relinquishment, assessment of results from wells or geological or geophysical studies, and the assessment of whether the carrying value of the exploration and evaluation assets is unlikely to be recovered in full from successful development or by sale.

In both the above areas, the assessments include estimates and assumptions such as long-term oil prices, foreign exchange rates, discount rates, reserves, production profiles and capital expenditure, all of which are subject to risk and uncertainty. It is possible therefore that changes in these estimates may impact the recoverable values of exploration and evaluation assets.

Details of the Group's intangible exploration and evaluation assets and goodwill are disclosed in Note 12 to the financial statements.

Recoverable value of property, plant and equipment

At each reporting date, management reviews the Group's property, plant and equipment to assess whether there is any indication of impairment. If such an indicator exists, the recoverable amount of the asset or cash-generating unit (CGU) is estimated. The recoverable amount is the higher of (i) fair value less costs of disposal and (ii) value in use, which is determined by discounting the expected future cash flows from the asset or CGU.

This assessment requires significant judgement, including assumptions on long-term oil price forecasts, foreign exchange rates, discount rates, reserves, production profiles, and capital expenditure plans, all of which involve risk and uncertainty. Changes in these assumptions could materially affect the recoverable amount and lead to the recognition or reversal of impairment losses.

Impairment losses are recognised in the income statement when the carrying amount of an asset or CGU exceeds its recoverable amount. Where an impairment loss is subsequently reversed, the carrying amount is increased to the revised estimate of the recoverable amount, subject to not exceeding the carrying amount that would have been determined had no impairment been recognised previously.

Further details of the Group's property, plant and equipment are provided in Note 13 to the financial statements.

Decommissioning costs

The estimated cost of decommissioning at the end of the producing lives of fields is periodically reviewed and is based on forecast prices and technology at the balance sheet date which are provided by technical teams. Provision is made for the estimated cost using a discounted cash flow method and a risk-free rate. Details of the Group's decommissioning provisions are disclosed in Note 20 to the financial statements.

(vi) Classification as asset held for sale (IFRS 5)

Judgement is required in determining whether UKOG (GB) Limited meets the criteria for classification as an asset held for sale under IFRS 5.

Management assessed that, at 30 September 2025, the disposal was highly probable, the asset was available for immediate sale in its present condition, and an active programme to complete the sale had been initiated. Accordingly, the subsidiary was classified as held for sale and measured at the lower of its carrying amount and fair value less costs to sell.

Subsequent to the reporting date, the disposal completed following receipt of the required regulatory approvals.

5.    Segmental reporting

In 2025 and 2024, all the Group's assets and operations were in the United Kingdom. For management purposes, the Group is organised into business units based on the main types of activities and has three reportable segments, as follows:

·      Oil production includes producing business activities;

·      Oil exploration and evaluation and energy transition activities includes non-producing activities and the Group's hydrogen storage and clean energy projects (analysed as one segment in 2024);

·      Head Office, corporate and administrative, including parent company activities.

The Board of Directors monitors the operating results of its business units separately for the purpose of making decisions about resource allocation and performance assessment. Segment performance is evaluated based on operating profit or loss and is measured consistently with operating profit or loss in the consolidated financial statements. However, the Group's financing (including finance costs and finance income) and income taxes are managed on a group basis and are not allocated to operating segments. The accounting policies used by the Group in reporting segments internally are the same as those used in the financial statements.

Revenues of £432,000 are derived from a single external customer. These revenues are attributed to the oil production segment.

Year ended 30 September 2025

Group	Oil production £'000	Development assets	Oil exploration & evaluation £'000	Corporate & administrative and consolidation adjustments £'000	Consolidated £'000
REVENUE
External Customers	432		-	-	432
Total revenue	432		-	-	432
Results
Depreciation, Depletion & Amortisation	(26)		-	(3)	(29)
Exploration write offs & Impairment charges	(121)	(920)	(227)	-	(1,269)
Finance costs	(202)		-	-	(202)
Loss before taxation	(1,351)	(1,073)	(509)	(1,165)	(4,098)
Taxation	-		-	-	-
Loss after taxation	(1,351)	(1,073)	(509)	(1,165)	(4,098)
Segment assets	871	335	-	(70)	1,136
Segment liabilities	(5,085)	(87)	(629)	(1,021)	(6,822)
Other disclosures:
Capital expenditure (1)	9	256	227	7	499

(1)           Capital expenditure consists of capitalised exploration expenditure, development expenditure, additions to oil & gas properties and to other intangible assets including expenditure on assets from the acquisition of subsidiaries.

Year ended 30 September 2024

Group	Oil production £'000	Oil exploration & development £'000	Corporate & administrative and consolidation adjustments £'000	Consolidated £'000
REVENUE
External Customers	1,110	-	-	1,110
Total revenue	1,110	-	-	1,110
Results
Depreciation, Depletion & Amortisation	(303)	-	(84)	(387)
Exploration write offs & Impairment charges	(3,603)	(32,811)		(36,414)
Finance income/ costs	(142)	-	(30)	(172)
Loss before taxation	(3,230)	(35,455)	195	(38,490)
Taxation	-	-	-	-
Loss after taxation	(3,230)	(35,455)	195	(38,490)
Segment assets	872	565	1,924	3,361
Segment liabilities	(4,784)	(390)	(658)	(5,832)
Other disclosures:
Capital expenditure (1)	61	840	2	903

(1)           Capital expenditure consists of capitalised exploration expenditure, development expenditure, additions to oil & gas properties and to other intangible assets including expenditure on assets from the acquisition of subsidiaries.

6.    Operating Loss

Group	2025 £'000	2024 £'000
Operating (loss) is stated after charging:
Decommissioning expense/ (credit)	450	(1,119)
Directors' remuneration - fees & salaries	504	457
Auditors' remuneration
Audit-related assurance services  (PKF)	90	90
Audit-related assurance services (MKS)	-	75
Audit-related assurance services  (MKS overruns)	104	-
Depletion of oil & gas properties	-	26

 

7.    Revenue

The Group has recognised the following amounts relating to revenue in the statement of comprehensive income:

Group	2025 £'000	2024 £'000
Revenue from contracts with customers	432	1,110
Total	432	1,110

 

All revenue is derived from sales of oil from one geographic location and is recognised at a point in time.

8.    Directors and employees

The Company employed the services of an average of 9 employees in the year (2024: 12). Remuneration in respect of these employees was:

Group	2025 £'000	2024 £'000
Employment costs, including Directors, during the year:
Wages and salaries	1,098	1,613
Social security costs	148	210
Employee pension costs	10	13
Benefits in kind	26	18
Total	1,282	1,854

 

Employee pension costs payable at the end of the year amounted to £2,000 (2024: £2,000).

Average number of persons, including Executive Directors employed

	2025 No.	2024 No.
Administration	7	7
Operations	2	5
Total	9	12

 

Further details of Directors' remuneration, including share-based payments, pension contributions and other benefits, are provided in the Directors' Remuneration Report.

9.    Finance costs

	2025 £'000	Restated 2024 £'000
Loan interest due to non-controlling interests	(152)	(128)
Unwind of discount on decommissioning provision (note 20), restated	(50)	(14)
Convertible loan fees	-	(30)
Total - Finance cost	(202)	(172)

 

Prior period adjustments have been recognised during the year. Further details of these adjustments are provided in Note 3.  

10.  Income tax

The Group's oil and gas activities in the UK fall within the ring fence corporation tax regime. Profits from these activities are subject to a combined rate of 40% (2024: 40%), comprising mainstream corporation tax at 30% and a supplementary charge of 10%.

The tax reconciliation below shows how the reported loss before taxation would reconcile to the theoretical tax charge at the applicable ring fence rate. However, no deferred tax asset has been recognised in respect of carried-forward tax losses, reflecting the uncertainty over the timing of their utilisation.

	2025 £'000	2024 £'000 (restated)
Loss for the year before tax	(4,098)	(38,490)
Tax at 40% (UK ring-fence corporation tax rate)	40%	40%
Tax at applicable rate (40%)	(1,639)	(15,396)
Non-deductible expenses (including impairments and exploration write-offs)	365	14,744
Temporary differences not recognised	1,228	523
Pre-trading expenditures deductible in later periods	61	142
Tax impact of capital allowances	(5)	(20)
Utilisation of losses brought forward	(106)	-
Relief of finance costs	95
Other movements	1	(7)
Total tax charge/(credit)	-	-

 

Prior period adjustments have been recognised during the year. Further details of these adjustments are provided in Note 3.  

The Group estimated carried forward tax losses none of which are recognised as a deferred tax asset.

At 30 September 2025, the Group had accumulated tax losses available for carry forward of £62,327,427 (2024: £57,190,149 restated). No deferred tax asset has been recognised in respect of these losses, impairments or other deductible temporary differences due to the uncertainty over future taxable profits against which they may be utilised.

No deferred tax liability was recognised as the Group has substantial brought-forward ring-fence and supplementary charge losses. These are offsetable against future tax liabilities and offsetable with the same tax authority. PPE are in entities that have the losses and any tax base differences have merely been recognised as unrecognised deferred tax losses .  

Deferred tax assets have not been recognised in respect of the unprovided deferred taxation items because it is not probable that future taxable profit will be available to utilise these deductible temporary differences.

 

11.  Earnings per share

The calculation of the basic loss per share is calculated by dividing the consolidated loss attributable to the equity holders of the Company by the weighted average number of ordinary shares in issue during the year.

Group	2025 £'000	2024 £'000 restated
Loss attributable to ordinary shareholders	(3,757)	(37,750)

 

Group	2025 No.	2024 No.
Weighted average number of ordinary shares for calculating basic loss per share	8,689,253,916	4,343,546,436

 

Group	2025 Pence	2024 Pence Restated
Basic and diluted loss per share	(0.043)	(0.87)

 

As inclusion of the potential ordinary shares would result in a decrease in the earnings per share, they are considered to be anti-dilutive, as such, diluted earnings per share is not included. The potential number of dilutive shares is nil.

12.  Intangible assets

Group

	Exploration & evaluation costs £'000	Development assets £'000	Total £'000
As at 30 September 2023 (Restated)	31,704	1,266	32,970
Additions	840	-	840
Impairment of exploration and evaluation assets	(32,544)	-	(32,544)
Impairment of development assets	-	(266)	(266)
As at 30 September 2024 (Restated)	-	999	999
Additions	227	256	483
Impairment of exploration and evaluation assets	(227)	-	(227)
Impairment of development assets	-	(920)	(920)
As at 30 September 2025	-	335	335

 

Prior period adjustments have been recognised in respect of 30 September 2023 and 30 September 2024. Further details of these adjustments are provided in Note 3.  

During the year, management made the strategic decision to exit the Portland project. This decision represents an indicator of impairment under IAS 36, as it constitutes a significant adverse change in the extent to which the asset is expected to be used. Accordingly, the Group performed an impairment assessment of the relevant development assets. The recoverable amount was assessed with reference to fair value less costs of disposal, reflecting the absence of future economic benefits associated with the Portland project. As a result, an impairment charge of £920K was recognised.

 

Company

 

	Exploration & evaluation costs £'000	Development assets £'000	Total £'000
As at 30 September 2023 (Restated)	527	490	1,017
Additions	260	-	260
Impairment of assets	(788)	(136)	(924)
As at 30 September 2024 (Restated)	-	353	353
Additions	195	155	350
Impairment of E&E and development assets	(195)	(356)	(551)
As at 30 September 2025	-	152	152

 

Prior period adjustments have been recognised in respect of 30 September 2023 and 30 September 2024. Further details of these adjustments are provided in Note 3.  

Following the impairment review disclosed above, the carrying value of development assets at the Company as at 30 September 2025 is £152K, representing assets associated with projects where management continues to expect future economic benefits.

Exploration and Evaluation assets in 2024

In accordance with IFRS 6 - Exploration for and Evaluation of Mineral Resources, the Group assesses at each reporting date whether there is any indication that an exploration and evaluation ("E&E") asset may be impaired. If such indicators exist, the Group performs an impairment test to determine the recoverable amount of the asset or cash-generating unit ("CGU"). Management has determined that each licence interest held by the Group constitutes a separate CGU, as this represents the lowest level at which largely independent cash inflows are expected to be generated.

Indicators considered include the period for which the Group has the right to explore, the likelihood of licence renewal, availability of funding for continued exploration, the results of technical evaluations, and whether further substantive expenditure is planned. Where such indicators exist, the recoverable amount of the CGU is estimated and compared with its carrying amount.

Licence/ Subsidiary	Impairment (£m)	Reason
Horse Hill (E&E)	20.0	Planning consent uncertainty; economic uncertainty on UK onshore oil and gas, the capital requirement and planning consent
Turkey	3.4	Exit from licence in FY 2025
PEDL234	9.2	Exit from licence in FY 2025

 

By recognising the impairment of the Horse Hill asset in 2024, the Board adopted a prudent approach to ensure that asset carrying values appropriately reflected the prevailing regulatory position. This approach is consistent with the Group's strategic transition towards clean power, including its hydrogen storage and generation activities.

The Board notes that, should planning consent for Horse Hill be reinstated in the future, there may be potential for a partial reversal of the impairment, subject to the requirements of IAS 36 and prevailing economic conditions. The recoverable value was assessed based on discounted cash flow techniques, applying assumptions consistent with market participant expectations.

Exploration costs in the financial year to 30 September 2025 were £0.2 million and impaired in full (2024: £32.5 million).

 

 

13.  Oil & gas properties

Group

	Oil & Gas properties	Decommissioning asset	Property Plant & Equipment	Total £000	Total 2024 £000
Cost
As at 30 September 2024 (Restated)	17,542	775	2,243	20,560	20,027
Additions	9	-	7	16	61
Change in estimate	-	(2)	-	(2)	472
As at 30 September 2025	17,551	773	2,250	20,574	20,560
Depletion & impairment
As at 30 September 2024	(16,963)	(661)	(2,230)	(19,854)	(15,864)
Depletion and depreciation	-	(10)	(19)	(29)	(387)
Impairment	(8)			(8)	(3,603)
Impairment on classification as held for sale	(112)	-	-	(112)	-
As at 30 September 2025	(17,083)	(671)	(2,249)	(20,003)	(19,854)
Carrying value
As at 30 September 2024	579	114	13	706	706
As at 30 September 2025 (before transfer to assets held for sale)	468	103	2	573	-
Transferred to assets held for sale	(468)	(103)	-	(571)	-
As at 30 September 2025	-	-	2	2	-

 

Prior period adjustments have been recognised during the year. Further details of these adjustments are provided in Note 3.  

 

Impairment of Oil and Gas Assets

Cash-generating units ("CGUs") for impairment purposes are defined as individual fields or groups of fields that generate largely independent cash flows. The Group has historically identified two producing CGUs: Horse Hill and Horndean.

Impairment recognised in the prior year (2024)

The outcomes of the impairment reviews undertaken during the year ended 30 September 2024 were as follows:

·      Horse Hill CGU
The carrying value of the Horse Hill CGU was £2.1 million, included within oil and gas properties. The recoverable amount was assessed as nil (refer to note 12), resulting in a full impairment being recognised in 2024.

·      Horndean CGU
The carrying value of the Horndean oil and gas properties was £1.5 million. Based on production performance and internal forecasts at that time, the recoverable amount was assessed at £0.6 million, resulting in an impairment charge of £0.9 million in 2024.

Position in the current year (2025)

During the year ended 30 September 2025, the Horndean CGU was classified as an asset held for sale in accordance with IFRS 5, following entry into a Sale and Purchase Agreement ("SPA") with a consideration of £0.4 million.

On classification as held for sale, the carrying value of the Horndean assets was measured at the lower of carrying amount and fair value less costs to sell. As a result, an impairment charge of £112k was recognised in the year, reflecting the difference between the carrying value and the agreed SPA consideration.

 

Property, plant & equipment (Company)

Company	2025 £'000	2024 £'000
Cost
As at 1 October 2024	1,831	1,829
Additions	15	2
As at 30 September 2025	1,846	1,831
Depletion & impairment
As at 1 October 2024	(1,827)	(416)
Depletion charge	-	(83)
Impairment	(17)	(1,328)
As at 30 September 2025	(1,844)	(1,827)
Carrying value
As at 30 September 2025	2	5

 

14.  Investment in subsidiaries

Company	2025 £'000	2024 £'000
Cost and net book amount
At 1 October	197	26,242
Impairment	-	(26,045)
At 30 September	197	197

 

The Directors carried out a review of the Company's investment in subsidiaries as at 30 September 2025.

During the prior year, the Company recognised a significant impairment in respect of its investments in subsidiaries, including Horse Hill Developments Ltd, UKOG Turkey Ltd, UKOG (234) Ltd and UKOG (GB) Limited, reflecting the reduced recoverable value of these investments.

No further impairment has been recognised in the current year, as the carrying value of the investments has been assessed as appropriate based on the Directors' review.

The Company holds more than 50 per cent of the share capital of the following companies as at 30 September 2025:

Company	Country of Registration	Proportion held	Functional Currency	Nature of business
UKOG (GB) Limited	UK	100%	GB£	Oil production
UKOG (234) Limited	UK	100%	GB£	Oil exploration
Horse Hill Developments Ltd	UK	77.9%	GB£	Oil production
UKOG (137/246) Holdings Ltd	UK	100%	GB£	Holding Company
UKOG (137/246) Ltd	UK	100%	GB£	Oil exploration
UKOG (Turkey) Ltd	UK	100%	GB£	Oil exploration
UK Energy Storage Ltd	UK	100%	GB£	Energy storage
UK Oil & Gas Investments Limited	UK	100%	GB£	Dormant
UK Geothermal Limited	UK	100%	GB£	Dormant
UK Oil & Gas Employee Benefit Trust	UK	Not owned, Consolidation explained below	GB£	Basis disclosed below

The registered address of each of these subsidiaries can be found on the Companies House website.

All subsidiary undertakings are included in the consolidated financial statements. The proportion of the voting rights in the subsidiary undertaking held directly by the parent company do not differ from the proportion of the ordinary shares held. The following companies are taking an exception from the audit of the financial statements as per S479A of the Companies Act; UKOG (GB) Limited (04050227), UKOG (234) Ltd (07055133), UKOG (137/246) Holdings Ltd (09010542), UKOG (Turkey) Ltd (10212262), UK Oil & Gas Investments Limited (11252712), UK Geothermal Limited (13386906), UKOG (137/246) Limited (06807023 ), UK Energy Storage Ltd (14108327).

Employee Benefit Trust (EBT)

The UK Oil & Gas Employee Benefit Trust ("EBT") has been consolidated in these financial statements in accordance with IFRS 10 Consolidated Financial Statements. Although the Company does not hold a direct equity interest in the trust, the Group is deemed to control it because:

·      the trust operates solely for the benefit of the Company's employees and directors in connection with the Group's share incentive plans;

·      the Group, through the Remuneration Committee, has the ability to direct the relevant activities of the trust, including decisions over the distribution of shares; and

·      the Group is exposed to variable returns through the use of the trust to settle share-based payment arrangements.

·      Shares in the Company held by the EBT are presented as a deduction from equity within "own shares held in trust." Transactions between the EBT and the Group relating to the Company's own equity instruments are accounted for directly in equity.

At 30 September 2025, the EBT held 1,824,912,685 ordinary shares (2024: 864,485,685).

15.  Inventory

Group	2025 £'000	2024 £'000
Inventories - Crude Oil	-	2
Total	-	2

 

16.  Trade and other receivables

	Group		Company
	2025 £'000	2024 £'000	2025 £'000	2024 £'000
Trade receivables	-	107	-	1
Other debtors	86	189	339	413
Prepayments and accrued income	80	319	68	204
Loans to subsidiary companies	-	-	1,464	1,282
Total	166	614	1,871	1,899

 

 

The Directors consider that the carrying amount of trade and other receivables approximates to their fair value. Trade receivables are amounts due from customers for goods sold in the ordinary course of business. They are generally due for settlement within 30 days and are therefore all classified as current.

In 2025, the Directors carried out an impairment review of the loans to subsidiary companies and determined that an impairment charge of £177k is required in respect of the loan owed by Horse Hill Developments limited, UKOG Turkey and UKOG 234 Ltd (2024: £12.1m). 

 

17.  Cash and cash equivalents

	Group				Company
	2025 £'000	2024 £'000			2025 £'000	2024 £'000
Cash at bank and in hand	32	1,039			15	751
Total	32		1,039	15		751

 

 

18.  Trade and other payables

		Group		Company
		2025 £'000	2024 £'000	2025 £'000	2024 £'000
Trade creditors		969	965	594	469
Other creditors		254	48	263	47
Amounts owed to group undertakings		-	-	410	264
Accruals and deferred income		346	255	309	142
Total	1,569		1,268	1,576	922

 

The Directors consider that the carrying amount of trade and other payables approximates to their fair value.

19.  Borrowings

	Group		Company
Borrowings	2025 £'000	2024 £'000	2025 £'000	2024 £'000
Loans payable to Non-Controlling Interests	3,462	3,310	-	-
Total	3,462	3,310	-	-

 

At 30 September 2025, the outstanding loan balances owed to HHDL's shareholders were; Alba Mineral Resources PLC (Alba) £2.8 million (2024: £2.6 million), Doriemus PLC (Doremius) £0.6 million (2024: £0.6 million) and UK Oil & Gas Plc £18.0 million (2024: £17.8million). The loans are payable on determination by the Board of HHDL. The loans currently attract an interest rate equivalent to the Bank of England base rate.

20.  Provisions - decommissioning

Group	2025 £'000	2024 £'000 (restated)
As at 1 October (restated)	1,254	1,451
Change of estimate (net)	450	(212)
Unwind of discount	50	14
Reclassified to liabilities associated with assets held for sale	(161)	-
As at 30 September	1,591	1,254

 

The amount provided for at 30 September 2025 represents the Group's decommissioning liabilities in respect of the producing site at Horse Hill and the Broadford Bridge drilling site.

The Company makes full provision for the future cost of decommissioning oil production facilities and pipelines on a discounted basis upon the installation of those facilities. The decommissioning provision represents the present value of decommissioning costs relating to oil & gas properties. These provisions have been created based on the Company's internal estimates.

The Group has recognised provisions for the estimated future costs of decommissioning oil and gas production and exploration facilities. These costs are expected to be incurred over the productive lives of the assets, which range from 1 to 11 years.

Key assumptions used in the calculation are:

·      Discount rate: 3.59% to 4.88% pre-tax, reflecting management's assessment of risks not adjusted in the cash flows.

·      Inflation rate: 3%

·      Timing of outflows: based on current licence expiry dates and expected cessation of production.

·      Site-specific provision amounts are as follows:

£'000	Horse Hill	Broadford Bridge	Total
Discounted provision at 30 September 2025	1,184	407	1,591

 

Sensitivity analysis:

·      A 1% reduction in the discount rate would increase the total provision by approximately £29k.

·      A 1% increase in the inflation assumption would increase the provision by approximately £20k.

Assumptions based on the current economic environment have been made, which management believes are a reasonable basis upon which to estimate the future liability. These estimates are reviewed regularly to take into account any material changes to the assumptions. However, actual decommissioning costs will ultimately depend upon future market prices for the necessary decommissioning works required which will reflect market conditions at the relevant time. Furthermore, the timing of decommissioning is likely to depend on when the fields cease to produce at economically viable rates. This, in turn, will depend upon future oil & gas prices, which are inherently uncertain.

Reconciliation of decommissioning provisions to cash flows

The Group's decommissioning provisions are remeasured at each reporting date to reflect updated assumptions, including estimated costs, timing of settlement and applicable discount rates. In addition, the prior year comparative has been restated following a reassessment of the discount rate applied. These movements are non-cash in nature and therefore do not directly correspond to cash flows.

In accordance with IAS 7, the table below reconciles the movement in provisions recognised in the statement of financial position to the amounts reflected in the consolidated statement of cash flows.

	2025 £'000	2024 £'000 (restated)
Movement in provision per statement of financial position	337	(197)
Non-cash remeasurement of decommissioning provision	-	(908)
Unwinding of discount (included in finance costs)	(50)	(14)
Reclassified to liabilities associated with assets held for sale	161	-
Net adjustment in operating cash flows	449	(1,119)

 

21.  Share capital

Ordinary Shares	Number of ordinary shares	Nominal Value £	Total Value £'000
Issued at 30 September 2024	11,140,761,833	0.000000001	11
Share issue, November 2024	2,000,000,000	0.000000001	2
Retail Offer, November 2024	222,148,000	0.000000001	0
Placing Shares, February 2025	3,925,797,833	0.000000001	4
EBT subscription	960,427,000	0.000000001	1
Issued at 30 September 2025	18,249,134,666	0.000000001	18

 

Deferred shares

At 30 September 2025 and 2024, the Company had 1,158,385,352,229 deferred shares in existence. These deferred shares do not carry voting rights.

 

Total Ordinary and Deferred shares

The issued share capital as at 30 September 2025 is as follows:

	Number of shares	Nominal Value £	Total Value £'000
Ordinary shares	18,249,134,666	0.000000001	18
Deferred shares A	1,158,385,352,229	0.00001	11,585
Deferred shares B	3,250,738,617,790	0.000001	3,250
Total			14,853

 

22.  Share based payments

Share options

No share options were granted, exercised or cancelled during the year (2024: none granted, none exercised and none cancelled). At 30 September 2025, there were no share options in issue. The 121,500,000 share options outstanding at 30 September 2024 lapsed during that prior year.

Warrants

Nil warrants were in issue as of 30 September 2025 (2024: 24.2 million).

Employee Benefit Trust

The Company established the UK Oil & Gas Employee Benefit Trust ("EBT") on 29 September 2014 to facilitate the operation of the Company's existing share incentive plan over up to 10% of the Company's issued share capital from time to time, in a tax-efficient manner for the beneficiaries of that plan. The EBT is a discretionary trust for the benefit of directors, employees and consultants of the Company. Shares held in the EBT are intended to be used to satisfy future awards made by the Company's Remuneration Committee under the share incentive scheme.

At 30 September 2025, the EBT held 1,824,912,685 ordinary shares in the Company (2024: 864,485,685). Awards of ordinary shares to beneficiaries will be subject to vesting and other performance conditions determined by the Remuneration Committee, in line with prevailing market practice.

In accordance with IFRS, the EBT is consolidated into the Group's financial statements as the Company is considered to have control over the trust. As a result, the ordinary shares held by the EBT are presented as a deduction from equity within the consolidated statement of financial position, rather than as an investment. The cost of shares acquired by the EBT is recorded in equity, and no gain or loss is recognised on the purchase, sale, issue or cancellation of the Company's own shares.

Details of share options granted during the year to Directors, consultants & employees over the ordinary shares are as at 30 September 2024:

Share options	At 1 October 2023 No. Million	Issued during the year No. Million	Lapsed / exercised during the year No. Million	At 30 September 2024 No. Million	Exercise price £	Date from which exercisable	Expiry date
Allen Howard	5	-	(5)	-	0.0113	27/09/2019	25/09/2024
Kiran Morzaria	6.5	-	(6.5)	-	0.0113	27/09/2019	25/09/2024
Stephen Sanderson	25	-	(25)	-	0.0113	27/09/2019	25/09/2024
Nicholas Mardon Taylor	4	-	(4)	-	0.0113	27/09/2019	25/09/2024
	40.5	-	(40.5)	-
Consultants & employees	81	-	(81)	-	0.0113	27/09/2019	25/09/2024
Total	121.5	-	(121.5)	-

 

Details of warrants are as follows:

Warrants	At 30 September 2024 No. Million	Issued during the year No. Million	Lapsed / exercised during the year No. Million	At 30 September 2025 No. Million	Exercise price £	Date from which exercisable	Expiry date
Consultants	7.1	-	(7.1)	-	0.0009	01/08/2022	01/08/2025
Consultants	17.1	-	(17.1)	-	0.0009	09/09/2022	09/09/2025
Total	24.2	-	(24.2)	-

 

 

23.  Financial instruments and risk analysis

Financial assets by category

The categories of financial asset, all included initially measured at fair value and subsequently carried at amortised cost in the balance sheet and the headings in which they are included are as follows:

Current assets - Group	2025 £'000	2024 £'000
Trade and other receivables	166	614
Inventory	-	2
Cash and cash equivalents	32	1,039
Total	198	1,655

 

Current assets - Company	2025 £'000	2024 £'000
Trade and other receivables	407	617
Loans to subsidiary companies	1,464	1,282
Cash and cash equivalents	15	751
Total	1,886	2,650

 

Financial liabilities by category

The categories of financial liability all included at fair value and subsequently carried at amortised cost in the balance sheet and the headings in which they are included are as follows:

Current liabilities - Group	2025 £'000	2024 £'000
Trade and other payables	1,569	1,268
Borrowings	3,462	3,310
Total	5,031	4,578

 

Current liabilities - Company	2025 £'000	2024 £'000
Trade and other payables	1,166	657
Amounts owed to group undertakings	410	264
Total	1,576	921

 

The group is exposed to market risk through its use of financial instruments and specifically to credit risk, and liquidity risk which result from both its operating and investing activities. The group's risk management is coordinated at its head office, in close co-operation with the board of Directors, and focuses on actively securing the group's short to medium term cash flows by minimising the exposure to financial markets.

Long term financial investments are managed to generate lasting returns. The group does not actively engage in the trading of financial assets for speculative purposes, nor does it write options. The most significant financial risks to which the group is exposed to are described below.

Interest rate sensitivity

The group is not substantially exposed to interest rate sensitivity, other than in relation to interest bearing bank accounts.

Credit risk analysis

The group's exposure to credit risk is limited to the carrying amount of trade receivables and cash at bank. The group continuously monitors defaults of customers and other counterparties, identified either individually or by Company, and incorporates this information into its credit risk controls. Where available at reasonable cost, external credit ratings and/or reports on customers and other counterparties are obtained and used.

The group's policy is to deal only with creditworthy counterparties. Group management considers that trade receivables that are not impaired for each of the reporting dates under review are of good credit quality, including those that are past due. None of the group's financial assets are secured by collateral or other credit enhancements. The credit risk for liquid funds and other short-term financial assets is considered negligible since the counterparties are reputable banks with high-quality external credit ratings.

Liquidity risk analysis

The majority of the Group's liabilities are contractually due within one year. The loan due from Horse Hill Developments Limited to Alba and Doriemus is payable on determination by the Board of Horse Hill Developments Limited.

The group's continued future operations depend on its ability to raise sufficient working capital through the issue of equity share capital or debt financing. The Directors are confident that adequate funding will be forthcoming to finance operations. Controls over expenditure are carefully managed.

Capital management policies

The group's capital management objectives are to:

·      Ensure the group's ability to continue as a going concern;

·      Provide a return to shareholders; and

·      To provide capital for the purpose of strengthening the Group's risk management capability.

The Group actively and regularly reviews and manages its capital structure, to ensure an optimal capital structure, and equity holder returns, taking into consideration the future capital requirements of the Group and capital efficiency, prevailing and projected profitability, projected operating cash flows, projected capital expenditures and projected strategic investment opportunities. Management regards total equity as capital and reserves, for capital management purposes.

Commodity price risk

The Group is exposed to the risk of fluctuations in prevailing market commodity prices on the mix of oil & gas products it produces. The Group's policy is to manage these risks through the use of contract-based prices with customers.

Commodity Price Sensitivity

The table below summarises the estimated impact of reasonably possible changes in crude oil prices on profit before tax, with all other variables held constant. The analysis assumes a 10% movement in crude oil prices, equivalent to a change of approximately US$8.10/bbl (2024: US$7.18/bbl).

The sensitivity has been determined based on a review of historical price volatility and forward-looking market expectations.

Increase/decrease in crude oil prices	Effect on profit before tax for the year ended 30 September 2025 Increase/(Decrease) £'000	Effect on profit before tax for the year ended 30 September 2024 Increase/(Decrease) £'000
Increase US$ 8.10 /bbl (2024: US$ 7.18/bbl)	49	78
Decrease US$ 8.10 /bbl (2024: US$ 7.18/bbl)	(49)	(78)

 

Currency risk

The Group has no significant monetary assets or liabilities denominated in a foreign currency. However, the group is exposed to currency risk, with the price of Brent Crude Oil being denominated in US$. The current exposure is not seen as material, given the current level of revenue generated from it. The Board will continue to monitor this risk as the operations and/or revenues increase.

24.  Commitments & contingent liabilities

Ongoing exploration expenditures are required to maintain title to the Group's exploration permits. No provision has been made in the financial statements for these amounts as the expenditure is expected to be fulfilled in the normal course of the Group's operations. As of 30 September 2025, the Group had no further material commitments (2024: none).

Subsequent to the Group's exit from Turkey in October 2024, it received a claim of $100,000 from its former partner in relation to post exit operations. The Directors have carefully considered this matter, including the basis of the claim and the likelihood of whether any settlement was required.

The Group has assessed the nature of the claim and obtained legal advice, which confirmed the Directors' view that there was no remaining formal legal or contractual basis for the claim under the exit terms agreed with the operator. This position was communicated by the Company's solicitors to the operator at the time and, to date, nothing further has since been received on the matter. Accordingly, the Directors do not consider that a present obligation exists as at the reporting date and no provision has been recognised in the financial statements.

 

25.  Non-current assets held for sale

In July 2025, the Company agreed the sale of its 100%-owned subsidiary UKOG (GB) Limited to Servatec Holdings Limited for a cash consideration of £400,000. Completion was subject to the normal sector regulatory consents. UKOG (GB) holds minority non-operated interests in two UK onshore petroleum licences, a 10% interest in PL211 and a 5% interest in PEDL070, containing the Horndean and Avington oil fields, respectively.

At 30 September 2025, the disposal met the criteria to be classified as held for sale in accordance with IFRS 5 Non-current Assets Held for Sale and Discontinued Operations.

The sale was considered highly probable, management was committed to the disposal, regulatory consent was expected to be granted, and completion was expected within 12 months of the date of classification.

Accordingly, the assets and liabilities of UKOG (GB) Ltd were presented separately as assets held for sale and liabilities directly associated with assets held for sale as at 30 September 2025.

Assets held for sale are measured at the lower of their carrying amount and fair value less costs to sell. Any impairment arising on classification is recognised immediately in the income statement. Depreciation, depletion and amortisation cease from the date of classification.

The disposal does not constitute a discontinued operation as defined by IFRS 5, as it does not represent a separate major line of business or geographical area of operations. The assets disposed of comprised minority non-operated interests and did not represent a significant component of the Group's overall operations. Accordingly, the results of the disposal group have been presented within continuing operations.

On 3 December 2025, subsequent to the reporting date, the Group completed the disposal, following receipt of approval from the North Sea Transition Authority ("NSTA"), which constituted the final condition precedent to the transaction.

In accordance with the terms of the sale agreement, the transaction became effective upon receipt of NSTA approval, with completion being a consequential administrative step.

As at 30 September 2025

£'000
Assets
Oil & Gas properties	571
Trade and other receivables	22
Inventory	2
Cash and cash equivalents	6
Total assets classified as held for sale	601
Liabilities
Provisions	(161)
Trade and other payables	(40)
Total liabilities associated with assets held for sale	(201)
Net assets of disposal group	400

 

 

26.  Events after the reporting date

The Directors have considered events occurring after the reporting date and up to the date of approval of these financial statements.

Subsequent to 30 September 2025, during October and November 2025, the Group successfully raised approximately £5.0 million of funding (before expenses) through a series of equity placings, as announced via regulatory news service ("RNS") announcements during the period. The proceeds were raised to support working capital requirements and to fund the continued development of the Group's Clean Power and hydrogen storage projects.

On 1 October 2025, the Group's wholly owned subsidiary, UK Energy Storage Ltd, entered into a Memorandum of Understanding ("MOU") with National Gas Transmission PLC. The MOU provides a framework for collaboration in relation to the planned development of hydrogen transmission infrastructure in the UK, including the potential connection of UKEn's proposed hydrogen storage projects in South Dorset and East Yorkshire to National Gas's proposed Project Union hydrogen pipeline network. The MOU is non-binding and does not give rise to any financial commitments at the reporting date. 

On 3 December 2025, the Group completed the disposal of its wholly owned subsidiary UKOG (GB) Ltd, following receipt of the relevant regulatory approvals. The disposal proceeds were received post year end. The assets and liabilities of UKOG (GB) Ltd had been classified as held for sale at 30 September 2025.

In February 2026, as part of the Company's commitment to transitioning into clean energy, it has now successfully Plugged and Abandoned its Broadford Bridge-1/1z well.

In March 2026, UK Energy Storage Limited, entered into a Memorandum of Understanding with Wales & West Utilities Limited to explore the potential integration of the Group's planned South Dorset hydrogen storage project with the proposed HyLine SouthWest hydrogen pipeline network. The MOU sets out the parties' intention to collaborate on potential pipeline connectivity, future joint applications for government support and the development of hydrogen infrastructure in the region. This agreement represents a non-binding arrangement and no financial commitments have been entered into at this stage.

On 1 April 2026, the Company's ordinary shares were suspended from trading on AIM pending publication of the Group's annual report and accounts for the year ended 30 September 2025, in accordance with AIM Rule 19. The suspension remains in place until the audited financial statements are published.

27.  Related party transactions

Transactions with related parties

There were no material transactions with related parties during the year ended 30 September 2025 (2024: £4,500). UK Oil & Gas Plc paid a subscription fee for membership with United Kingdom Onshore Oil & Gas (UKOOG) during 2024. This was considered a related party transaction as a director of the Company also served as a director of UKOOG during the period.

Remuneration of key management personnel

The remuneration of the company's directors and other key management personnel is set out below in aggregate for each of the categories specified in IAS24 Related Party Disclosures. The Directors Remuneration Report provides further details.

	2025 £'000	2024 £'000
Short-term employee benefits	504	457
Total	504	457

 

28.  Ultimate controlling party

In the opinion of the Directors there is no controlling party.