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UK Oil & Gas raises additional £0.5 million for hydrogen projects

Published 03/10/2025, 12:38
UK Oil & Gas raises additional £0.5 million for hydrogen projects
UKOGa
3.57%

LONDON - UK Oil & Gas PLC (AIM:UKOG) has secured an additional £0.5 million in funding through a share placement to accelerate its hydrogen storage and generation projects, according to a press release statement issued Friday.

The company placed 1.67 billion new ordinary shares at 0.03 pence per share, representing a 14% discount to the closing price of 0.035 pence on October 2. The placement follows an earlier funding round announced on October 2, with both offerings priced identically.

UKOG stated the new capital will strengthen technical and economic studies for its South Dorset and Yorkshire salt-cavern hydrogen storage and generation initiatives, which the company has designated as its "future core focus" as it transitions away from petroleum operations.

The funds will specifically support engineering concept and design studies necessary for UKOG’s planned collaboration with National Gas, announced on October 1. This partnership aims to position the company for government revenue support through the Hydrogen Transport and Hydrogen Storage Business Model allocation rounds scheduled to begin in the first half of 2026.

Additionally, the funding will enable UKOG’s wholly owned subsidiary, UK Energy Storage, to advance a potential combined electrolytic hydrogen generation and salt-cavern storage scheme in central eastern Dorset, including technical studies following initial discussions with Dorset Council and a local industrial hydrogen customer.

The company also plans to complete economic modeling to support discussions with potential strategic joint venture partners for its hydrogen storage projects.

CMC Markets UK Plc, trading as CapX, served as the sole placing agent for the transaction. The new shares are expected to be admitted to trading on AIM around October 9, after which the company will have approximately 29.9 billion total voting rights.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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