25th Jul 2014 11:01
LONDON (Alliance News) - UK Oil & Gas Investments PLC Friday said it has raised GBP2 million through a company-arranged placing of 200 million shares at a placing price of 1 pence per share.
The company, which has interest in the UK Weald Basin's Horse Hill-1 well, said the proceeds will be used to make further investments and provide further working capital.
"The placing significantly enhances the company's balance sheet and enables the company to continue to pursue further investments in the conventional onshore and offshore oil and gas in the UK," Chairman David Lenigas said in a statement.
The news comes a day after Northern Petroleum PLC agreed to sell all of its UK licences and assets to UK Oil & Gas Investments PLC in a deal worth GBP1.5 million.
The deal was originally planned to be paid for in both cash and shares, but UKOG said Friday that following the placing, it plans to pay for the deal wholly by cash.
UKOG shares were down 9.3% to 1.04 pence on Friday.
By Tom McIvor; [email protected]; @TomMcIvor1
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