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UK Oil & Gas (UKOG) Shares Fall After Horse Hill Equipment Purchase Completed

Updated: 25 May 2021

Shares of UK Oil & Gas (LON: UKOG) are sliding after the announcement that it has completed the final instalment under the purchase agreement for the Horse Hill surface production equipment from PW Well Test Ltd.

UKOG acquired the equipment from PW Well for £1.65 million in total. They paid in three equal instalments of £550,000.

The first instalment was made in July 2020, upon signature of the asset purchase agreement via equal amounts of cash and UKOG shares. The second instalment was completed in February 2021 via the issue of UKOG shares.

The final payment could have been made in cash or shares, with UK Oil & Gas opting to pay via the issue of 262.7 million shares at a 5-day VWAP of £ 0.0021.

AIM-listed UK Oil and Gas' current share price is trading at 0.19p, down 7.5% from Monday's close.

For the year to date, UKOG shares are up over 22.6%. However, they have fallen 25% in the past month, with an 18% drop in the past week alone.

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