4th Jun 2020 18:00
(Alliance News) - UK Oil & Gas PLC on Thursday said it has raised GBP4.2 million to fully repay outstanding convertible loan and become debt free.
The company has issued 2.10 billion new share at 0.2 pence per share to raise GBP4.2 million. Shares on Thursday closed at 0.21 pence each, down 11%
Proceeds from the placing will be used to repay outstanding GBP1.8 million convertible loan note with Riverfort Global Opportunities PCC Ltd and YA II PN Ltd, making the company debt free.
It also will be used for short but material intervention in the Horse Hill-1 well located in Surrey, England, to further boost production rates and to purchase currently rented surface production equipment, reducing Horse Hill oil field operating costs by a further USD4 per barrel.
Chief Executive Stephen Sanderson said: "With the lockdown rules easing and encouraging signs of recovery in the Brent oil price, the Company has acted decisively to both strengthen its financial position, target further profitability of its flagship Horse Hill asset and start preparations for its next appraisal wells at Loxley and on the Isle of Wight".
By Tapan Panchal; [email protected]
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