UK Oil and Gas Investments's share sale raises £6m

Jessica Morris
Follow Jessica
UKOG has raised funds from a new share issue (Source: Getty)

UK Oil and Gas Investments (UKOG) has raised £6m to fund its oil exploration in the Weald Basin.

The Aim-listed company placed more than 200m ordinary shares at 2.25 pence per share.

Ukog shares fell as much as six per cent to 2.35 pence per share in Tuesday trading, after the company confirmed it's in talks over a fundraising of £4.5m - but it warned there's no guarantee it will proceed with that fundraising.

Shares closed three per cent down at 2.42 pence per share.

Read more: UK Oil and Gas Investments share price rockets on new Horse Hill oil report estimating more oil

In a statement to the London Stock Exchange this morning, the so-called "Gatwick gusher" said:

The company notes speculation in today's media in relation to a fundraising.

The company can confirm that it is currently in talks with potential investors for a fundraising of at least £4.5m at a targeted price of approximately 2.25p.

There is no assurance the company will proceed with any fundraising.

Earlier this year the company's share price exploded after it said that a new discovery at Horse Hill near Gatwick could be bigger than North Sea oil fields with 100bn barrels.

But after being asked to clarify this by the London Stock Exchange it downplayed the size of the find saying that the estimates "should not be considered as either contingent or prospective resources or reserves".

Contingent or prospective reserves are those which are not immediately recoverable - but could be one day.

Nevertheless, the company's share price jumped again last week, following the publication of an independent report which said there was more oil than initially estimated at Horse Hill.

Related articles