Loan Conversion & Completion of Acquisition

UK Oil & Gas Investments PLC

 ("UKOG" or the "Company")

 

Loan Conversion & Completion of Acquisition of 10% of PEDL143

 

UK Oil & Gas Investments PLC (London AIM: UKOG), announces a further conversion of loan notes and the completion of the acquisition of a further 10% interest in PEDL143.

 

Loan Conversion

In relation to the £10 million financing announced on 15 November 2017 ("Loan"), UKOG has received a notice of exercise from Cuart Investments PCC Ltd and YA II PN Ltd to convert part of the Loan, with an aggregate par value of £500,000, into equity.

 

The Company has therefore issued today 14,159,092 new ordinary shares to the Investors ("Loan Conversion Shares"). Loan Conversion Shares will rank pari passu in all respects with the existing ordinary shares.

 

After today's conversion, the Par Value outstanding on the first £7.5 million tranche of the Loan is £6 million. The second and final £2.5 million tranche will be paid to the Company on 31 December 2017.

 

Loan Terms

The terms of the Loan, as stated by the Company on 15 November 2017, includes a provision that for as long as any portion of the Loan is outstanding, neither the Investors nor any of their affiliates;

 

i.  shall hold any net short position with respect to the equity of UKOG and

ii. can trade more than 15% of the number of UKOG shares that have traded in a trading day.

 

The Loan is convertible in tranches of not less than £250,000, with a limit of £3 million per quarter, unless otherwise agreed by the Company.

 

Completion of PEDL143 Acquisition, Holmwood Prospect, Weald Basin, UK

Further to our announcement dated 25 September 2017, UKOG is pleased to announce that it has received final regulatory consent from the Oil and Gas Authority and has completed the acquisition of  a further 10% interest in UK onshore Weald Basin licence PEDL143, from Warwick Energy Exploration and Production Limited ("Warwick").

 

This takes UKOG's interest in PEDL143 to 40%. PEDL143 covers 35.5 square miles and is located to the immediate west of Horse Hill licence PEDL137, in which UKOG has a 32.435% interest. The total Purchase Price is payable via the issue to Warwick of 9,382,271 new ordinary shares in UKOG ("Acquisitions Shares").

 

As previously reported, the Company will participate in the drilling of the planned Holmwood-1 exploration well which will test the Holmwood prospect's identified Portland sandstone, Kimmeridge limestone and Corallian sandstone reservoir objectives.

 

Application has been made for the Loan Conversion Shares and the Acquisition Shares to be admitted on AIM and it is anticipated that trading in such shares will commence on or around 11 December 2017.

 

Following Admission of both the Loan Conversion Shares and the Acquisition Shares, the Company's enlarged issued share capital will comprise of 3,597,200,095 ordinary shares. The Company does not hold any shares in treasury. This figure of 3,597,200,095 ordinary shares may be used by shareholders in the Company as the denominator for  the calculations by which they will determine if they are required to notify their interest in, or a change in their interest in, the share capital of the Company under the FCA's Disclosure and Transparency Rules.

 

For further information, please contact:

 

UK Oil & Gas Investments PLC

Stephen Sanderson / Kiran Morzaria                                     Tel: 01483 243450 

 

WH Ireland (Nominated Adviser and Broker)

James Joyce /James Sinclair-Ford                                           Tel: 020 7220 1666

 

Cenkos Securities PLC (Joint Broker)

Joe Nally / Leif Powis                                                                   Tel: 0207 397 8919

 

Public Relations

Brian Alexander / David Bick                                                    Tel: 01483 243450

 

UKOG Licence Interests

 

The Company has interests in the following ten UK Oil and Gas licences:

Asset	Licence	UKOG's Interest	Licence Holder	Operator	Area (km2)	Status
Avington 1	PEDL070	5%	UKOG (GB) Limited	IGas Energy Plc	18.3	Field in stable production
Baxters Copse 2	PEDL233	50%	UKOG Weald Limited	IGas Energy Plc	89.6	Appraisal/development well planned; licence extended to 2018
Broadford Bridge 3	PEDL234	100%	Kimmeridge Oil & Gas Limited 4	Kimmeridge Oil & Gas Limited 4	300.0	BB-1 & 1z drilling completed, testing of multiple zones underway
Holmwood 3	PEDL143	40%	UKOG	Europa Oil & Gas (Holdings) plc	91.8	Holmwood-1 exploration well planned in 2018
Horndean 1	PL211	10%	UKOG (GB) Limited	IGas Energy Plc	27.3	Field in stable production
Horse Hill 5	PEDL137	32.435%	Horse Hill Developments Ltd ⁶	Horse Hill Developments Ltd ⁶	99.3	Planning Permission & EA permit granted for production tests and two wells
Horse Hill 5	PEDL246	32.435%	Horse Hill Developments Ltd⁶	Horse Hill Developments Ltd ⁶	43.6	As above
Isle of Wight (Offshore) 3	P1916	100%	UKOG Solent Limited	UKOG Solent Limited	46.7	Reviewing M prospect viability and well plan
Isle of Wight (Onshore) 2, 3	PEDL331	65%	UKOG	UKOG	200.0	Preparing Arreton-3 planning submission
Markwells Wood 2	PEDL126	100%	UKOG (GB) Limited	UKOG (GB) Limited	11.2	Submitted planning application for appraisal and field development

 

Notes:

1. Oil field currently in production.

2. Oil discovery pending development and/or appraisal drilling.

3. Exploration asset with drillable prospects and leads. Contains the Broadford Bridge-1 and 1z discovery well and the extension of the Godley Bridge Portland gas discovery.

4. UKOG has a 100% interest in Kimmeridge Oil & Gas Limited, which has a 100% interest in PEDL234.

5. Oil discovery with recently completed flow testing.

6. UKOG has a direct 49.9% interest in HHDL, which has a 65% interest in PEDL137 and PEDL246.

The information contained within this announcement is deemed by the Company to constitute inside information under the Market Abuse Regulation (EU) No. 596/2014.