UK Oil & Gas Investments (Ukog) today responded to media speculation that it is meeting with new investors.
The company, which discovered the so-called Gatwick Gusher two years ago, confirmed the reports and said the meetings were aimed at finding new institutional investors who could fund the firm's growth strategy.
Ukog is seeking funding of at least £6.5m for exploration, appraisal drilling and long flow testing activities.
Shares in the company plummeted by as much as 16 per cent after it released the update this afternoon.
|Ukog statement in full|
Ukog notes the recent media speculation regarding a proposed fundraise and can confirm that the company is currently meeting with potential new institutional investors, to fund the company's stated growth strategy, with a target of achieving significant stable oil production by the end of 2018.
The potential funding would be utilised to carry out the exploration and appraisal drilling plus long flow testing activities, which is expected to begin by the end of Q2 2017 on Broadford Bridge.
To fulfil this part of the company's strategy, this will require a fundraise of a minimum of £6.5 million. At this point, the pricing has not been finalised with any potential investors, but the company expects pricing to be determined using typical market practices.
To date the company has received positive feedback from its roadshow nonetheless there can be no assurance that the proposed placing will be successful. A further announcement will be made in due course.