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UKOG Announces Successful Funding for South Dorset H2 Storage

21/02/2025

UK Oil & Gas has successfully raised gross proceeds of £ £400,431 by means of a private placing to a small number of professional investors of new Ordinary Shares at a price of 0.0102 pence per share. The Issue Price represents a discount of approximately 42 per cent to the Closing Price of 0.0175 pence per Ordinary Share on 20th February 2025, being the latest practicable business day prior to the publication of this Announcement.

Use of Proceeds:

Following our recent meetings with representatives of the government's Hydrogen Storage Business Model ("HSBM") team in December 2024, January and February 2025, the Placing's proceeds will be utilised to further the progress of the Company's South Dorset hydrogen storage project and its participation in the first HSBM Procurement Round, scheduled for later this year.

Specifically, the funds will permit the following to be initiated, strengthening the South Dorset project's credentials, helping achieve a competitive HSBM Procurement bid package and thus increasing the likelihood of obtaining government HSBM revenue support:

  • Conceptual design and preliminary metrics of a joint venture green hydrogen generation and import project at the adjacent deepwater Portland Port. The project geared towards the import of Middle Eastern green hydrogen carrier fluids and associated material green hydrogen production for transmission into our South Dorset storage site and onwards to the wider UK via SGN's H2 Connect pipeline. The creation of co-located hydrogen production, substantive storage and onward trunk pipeline transmission would position our South Dorset project as one of only three similar hydrogen "cohorts" in the UK, further strengthening the case for government revenue support.
  • Conceptual design of surface facility, pipeline routing, borehole placements and related construction works as part of  pre-Front End Engineering Design, necessary to meet current eligibility criteria for the HSBM Procurement process.
  • Operational expenses related to the HSBM Procurement process and bid submission.
  • General and administrative expenses.

Additionally, the Company continues discussions with several energy infrastructure investors regarding joint venture participation in the Company's South Dorset and Yorkshire projects owned by its wholly owned subsidiary UK Energy Storage ("UKEn").

KeyFacts Energy: UK Oil & Gas UK country profile 

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