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Highlights

  • UKOG raises £3 million via placing of new ordinary shares at 0.03 pence each.
  • Proceeds to fund hydrogen storage and generation projects in South Dorset and Yorkshire.
  • Collaboration with National Gas aims to align with government hydrogen revenue support schemes.

UK Oil & Gas PLC (LSE:UKOG) has successfully raised gross proceeds of £3 million through a placing of new ordinary shares at a price of 0.03 pence per share. The Issue Price reflects a discount of approximately 35% to the closing price of 0.046 pence per share on 1 October 2025, the most recent practicable business day prior to the announcement.

The Company’s latest Annual Report highlighted a strategic shift away from petroleum towards clean energy, identifying its South Dorset and Yorkshire salt-cavern hydrogen storage and generation projects as the central focus for future operations. The proceeds from the placing are intended to support both the planned hydrogen development initiatives and ongoing petroleum sector commitments, enabling the Company to progress its energy transition over the next year.

Specifically, the funding will allow UK Oil & Gas to commission and deliver essential engineering concept and design studies to underpin the planned collaboration between its wholly owned subsidiary UK Energy Storage (UKEn) and National Gas. This collaboration is positioned to support UKEn’s efforts in securing government revenue support through the Hydrogen Transport and Hydrogen Storage Business Model (HSBM) allocation rounds, now expected to begin in the first half of 2026. Following discussions with the government’s HSBM team on 23 September 2025, a new requirement for storage and pipeline operators to submit joint applications has made these studies and partnerships a critical step for UKEn.

The funding will also facilitate the progression of a combined electrolytic hydrogen generation and local-scale salt-cavern storage scheme in central eastern Dorset. Technical studies funded by the placing will build on initial discussions with Dorset Council and a major Dorset-based industrial hydrogen offtaker.

Additionally, the proceeds will be used to complete economic modelling to support discussions with energy infrastructure and sector specialists, aimed at securing a strategic joint venture partner for UKEn’s hydrogen storage projects.