UK Oil & Gas secures £3mln to fund further testing

UK Oil & Gas secures £3mln to fund further testing

UK Oil & Gas PLC said it has secured a £3mln loan from RiverFort Global Opportunities and YA II PN.

The committed funding facility will fund working capital requirements to progress planned activities over the next 12 months, according to a statement.

Included in those activities are further testing at Pinarova-1 in Turkey and a discharge of planning conditions and preparations for site construction at the Loxley gas discovery.

“The facility provides the company with working capital at competitive terms to fully fund its planned key UK and Turkey activities over the coming year,” said chief executive Stephen Sanderson.

The facility will be paid in three tranches, with the first £2mln paid within two days of completion, a further £500,000 paid before 17 November and the final amount of £500,000 paid before 16 February next year.

Additionally, the facility has a 0% interest rate and is repayable 18 months after each advance, with a further advance of £2mln available by mutual consent.

As part of the package, the oil and gas firm will issue the investors 1.3bn ordinary shares.

Published: 28-06-2023