UK Oil & Gas PLC on Friday announced the issue of shares to repay the principle balance of a 2023 facility.
The London-based energy exploration and production company announced in June 2023 that it secured a £3 million facility with RiverFort Global Opportunities PCC Ltd and YA II PN Ltd.
As outlined in the agreement, the company received £2 million initially, followed by two tranches of £500,000.
UK Oil & Gas has issued approximately 247.5 million shares to repay £50,000 of the loan. Following this, the principle balance today stands at £200,000 of the first £2 million payment from the facility.
The new shares are expected to admitted to AIM ‘on or around’ June 27. After admission there will be over 4.83 billion ordinary shares issued.
In addition, yesterday the company noted a three to two decision by the UK Supreme Court that found its 2019 grant of planning consent for oil production at Horse Hill, Surrey County Council did not consider carbon combustion emissions of produced hydrocarbons.
The ruling now requires an environmental impact assessment for the development.
Chief Executive Stephen Sanderson commented: ‘The Court’s rather perplexing retrospective ruling, which is counter to all prior judgements, further underscores why the company’s focus over the past few years has shifted away from oil and gas,
‘However, although Horse Hill is a small part of our portfolio, it still has a role to play in both the company’s and UK’s future transitional energy mix and thus we look forward to working closely with the local planning authority to rectify this retrospective change to EIA requirements.’
UK Oil & Gas shares were down 6.8% to 0.018 pence each in London on Friday afternoon.
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