UK Oil & Gas PLC on Monday announced the conditional placing of shares and plans for a retail offer to further the development of its hydrogen storage projects.

The London-based energy exploration and production company conditionally raised £1.0 million through the placing of 2.00 billion new shares priced at 0.05 pence each.

UK Oil & Gas shares were down 22% to 0.067 pence each in London on Monday morning.

In addition, the company plans a retail offer of new shares at the same price for its existing shareholders.

Proceeds will be used to advance the company’s hydrogen storage projects through the initiation of environmental and engineering studies, alongside other works necessary to submit applications for UK government support as part of the first hydrogen storage allocation round.

‘It will also greatly help us to secure at least one major strategic partner as a joint venture participant and to enhance our lobbying efforts with our new Labour government, who to date seem motivated and committed to making hydrogen and its storage a fundamental part of Britain’s renewable superpower ambition,’ said Chief Executive Stephen Sanderson.

On Friday last week, UK Oil & Gas said the underground hydrogen storage projects, which are in Dorset and Yorkshire, received a ltter of support from RWE AG. The Essen, Germany-based electricity utility gave UK Oil & Gas permission to reference RWE as a ’supporting party’ for the project in applications for UK government subsidies.

The latest fundraise effort follows July’s placing of 3.33 billion shares priced at 0.015 pence each which secured £500,000 to repay outstanding loan balances.

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