UK Oil and Gas raises £1 million for hydrogen storage projects

UK Oil & Gas PLC has conditionally raised gross proceeds of £1 million to develop further its hydrogen gas storage projects in Dorset and Yorkshire.

Priced at 0.05p, the issue was a 37% discount on Friday's closing price.

Existing retail shareholders will also be offered new shares on the same terms as the placing.

Both parts of the funding require shareholder approval to go ahead.

Specifically, UKOG said the new money would allow it to initiate essential new studies as part of its applications for government Revenue Support in the first hydrogen storage allocation round and Development Consent Orders under the Nationally Significant Infrastructure Project planning regime.

Money raised would also allow it to negotiate further with prospective strategic joint venture partners and conclude a land option agreement for a further hydrogen storage site.

Stephen Sanderson UKOG's chief executive commented: "The funding, together with the support from leading UK energy and hydrogen-space infrastructure players, RWE, Sumitomo and SGN, means we can now materially advance our nationally significant projects towards the goal of a competitive Revenue Support application.

It will also greatly help us to secure at least one major strategic partner as a joint venture participant and to enhance our lobbying efforts with our new Labour government."

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