AIM listed UK Oil & Gas Investments has raised $6.5million through a shares placing which will be used to develop its Horse Hill assets and five conventional oil and gas discoveries in the south east of England.
The proceeds were raised through the placing of 812,500,000 new ordinary shares in the company at 0.8 pence per new share.
The money will be used to supplement the company’s existing cash balances and to fund UKOG’s near-term growth strategy.
This includes the development of the Kimmeridge Limestone oil play as well as conventional discoveries in the Weald basin on the south coast.
Stephen Sanderson, UKOG’s executive chairman, said:”This fundraising, the largest in the company’s history, has illustrated great confidence in our strategy to deliver near-term commercial production from both the new Kimmeridge Limestone play and our interests in five conventional discoveries in the Weald Basin.
“The Company can now proceed with confidence to implement the first elements of this strategy, commencing with the drilling and extended well testing of our 100% owned Broadford Bridge-1 Kimmeridge Limestone well.
“Broadford Bridge will start our planned 18-month operational journey that could be truly transformational for the company. There are exciting times ahead.”
The company is also to apply for the admission of the new shares to trading on AIM and such trading is expected to take place next week.