UK Oil & Gas raises £2.2m for Turkish project

The company placed 1.375bn new shares with investors at 0.16p a share - a 15.8% discount to the shares' closing price on 1 October. It shares fell 13.2% to 0.16p at 12:08 BST.

UK Oil and Gas agreed to buy half of the Resan project from Aladdin Middle East in July and to take an active role in appraisal and exploration drilling at the site. It will use the money raised to buy drilling equipment, build a drilling pad and carry out other preparations.

"UKOG intends to take an active technical role in the Licence's 5-well oil appraisal and step-out exploration drilling and 2D seismic programme, which, Covid and weather permitting, is expected to commence this year," the company said.

The company said it was in final talks to complete the participation agreement and joint operating agreement for the licence. If talks fall through UK Oil & Gas will use the money for working capital and to develop its UK assets.

The new shares are expected to start trading on AIM on 8 October. UK Oil & Gas is best known for its investment in Horse Hill, a site near Gatwick airport that produces oil.