UKOG Secures £3 Million Funding to Accelerate Hydrogen Transition

UK Oil & Gas PLC (LON: UKOG) has successfully raised £3 million through a placing of new ordinary shares, signaling a decisive shift towards clean energy projects.

The funding aims to propel the company's hydrogen initiatives and facilitate its transition away from traditional petroleum operations.

The placing involved the issuance of 10,000,000,000 new ordinary shares at a price of 0.03 pence per share. This issue price reflects a discount of approximately 35% compared to the closing price of 0.046 pence on October 1, 2025. Admission to trading on AIM is expected around October 8, 2025.

The proceeds from the placing are earmarked for advancing UKOG's South Dorset and Yorkshire salt-cavern hydrogen storage and generation projects.

The projects are expected to become the core focus of the company's future operations, aligning with its strategic shift towards clean power. The funding will also support ongoing commitments within the petroleum sector during this transition period.

A significant portion of the funds will be allocated to commissioning essential engineering concept and design studies. These studies are crucial for the planned collaboration between UKOG's subsidiary, UK Energy Storage (UKEn), and National Gas.

This collaboration is intended to strengthen UKOG's applications for government revenue support via the Hydrogen Transport and Hydrogen Storage Business Model (HSBM) allocation rounds, scheduled to commence in the first half of 2026.

Following meetings with the government's HSBM team, a new requirement has emerged for both storage and pipeline operators to submit joint applications for government revenue support. This development underscores the importance of the collaboration with National Gas and the completion of necessary studies for UKEn's future success.

Furthermore, the funding will enable UKEn to progress a potential combined electrolytic hydrogen generation and local-scale salt-cavern hydrogen storage scheme in central eastern Dorset. This includes undertaking technical studies and building upon initial discussions with Dorset Council and a significant Dorset-based industrial hydrogen offtaker.

Additionally, the proceeds will be used to complete economic modeling to further discussions with energy infrastructure and sector specialists, with the aim of securing a key strategic joint venture partner for UKEn's hydrogen storage projects.

The placing was managed by CMC Markets UK Plc, trading as CapX, acting as the sole placing agent.

CEO Stephen Sanderson commented, “This material funding will help move our hydrogen projects towards fruition, permit us to deliver on our collaboration with National Gas and strengthen our intended submission of applications for government revenue support in the coming year.”