UK Oil & Gas shares sink as driller confirms it is mulling an equity raise

 
Torjus Roberg
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Significant Onshore Oil Discovery Made In Surrey
The company discovered a valuable oil site nicknamed the Gatwick Gusher in 2015 (Source: Getty)

UK Oil & Gas Investments shares plummeted 16 per cent after the company admitted it was considering an equity raise after recent media speculation.

The news of the possible equity raise comes as the company advances plans for drilling and well testing of its assets in Southern England.

Media organisations have been speculating about the equity raise but it was not until today the company confirmed the suspicions.

Read more: UK Oil & Gas announces part of £10m loan will be converted to equity

It said: “The company is progressing discussions and should any arrangement be finalised a further announcement will be made. Terms including amount and pricing are to be agreed and there can be no certainty a transaction will be finalised.”

The company, which is listed on London's Aim market, announced last month that part of its £10m loan would be converted into equity, giving investor Cuart Investment almost 20m shares a result of the conversion.

UK Oil & Gas is most famous for its 2015 oil find at Horse Hill in Surrey which was nicknamed the Gatwick Gusher, where billions of barrels worth of oil where found.

Read more: UKOG shares rise as it gets ready to start drilling at Gatwick Gusher site

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