Sam is a professional trader and the lead stock market news writer at AskTraders. After starting his career in the forex market, Sam now focuses on gold and stocks with a preference for fundamental and macroeconomic analysis.
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.
UK Oil and Gas shares are traded on the London stock exchange's AIM market (the alternative investment market), which is the submarket specifically for smaller companies. AIM stocks are attractive to investors as they have tax advantages and smaller companies have the potential to benefit from rapid growth. But are UKOG shares the best buy? Our stock market analysts regularly review the market and share their picks for high growth companies
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