UK Oil & Gas transitions to hydrogen storage from oil exploration

LONDON - UK Oil & Gas PLC (AIM:UKOG) is pivoting from petroleum exploration to hydrogen storage development, according to its unaudited results for the six-month period ended March 31, 2025, released Tuesday.

The company is advancing projects in South Dorset and East Yorkshire aimed at delivering salt cavern hydrogen storage facilities. Trading in UKOG shares is expected to resume following the publication of its annual and interim reports.

UKOG’s South Dorset project, designed by DEEP.KBB GmbH, would comprise 24 caverns providing up to 1.01 billion standard cubic meters of working hydrogen volume. This represents a 12% increase over the company’s original Portland Port project, with hydrogen withdrawal and injection rates providing up to 2.9 times the annual cycling capacity.

A report by Quod, an independent planning consultancy, estimated the South Dorset project could contribute £2.3 billion annually to the UK economy during its operational life and create up to 7,200 direct and supply chain jobs during construction.

The company has executed memorandums of understanding with Portland Port to jointly pursue hydrogen opportunities, including the generation of 1 GW of green hydrogen via import and electrolysis.

UKOG has ceased petroleum exploration activities in Turkey, transferring its 50% interest in the Resan license to joint venture partner Aladdin Middle East. The company has also relinquished PEDL234, containing the Loxley and Broadford Bridge discoveries, and sold its subsidiary UKOG (GB) Limited to Servatec Holdings Limited for £400,000.

Horse Hill oil production was temporarily shut in following a Supreme Court ruling requiring end-use carbon combustion emissions to be included in the environmental impact assessment. UKOG is working with Surrey County Council on a new retrospective planning submission.

For the six months ended March 31, 2025, UKOG reported a retained loss of £1.37 million, compared to £1.43 million in the same period last year. Revenue decreased to £0.31 million from £0.63 million due to lower production volumes.

The information is based on a press release statement from the company.

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