AIM-listed UK Oil & Gas has announced acceptance of a further GBP 1 million investment through a direct subscription of new Ordinary Shares, following continued investor demand. The subscription was priced at 0.03 pence per share, matching the company's prior placings announced on October 2nd and 3rd, 2025.

Investment Details and Share Structure

The Issue Price represents approximately a 9% discount to the Closing Price of 0.033 pence per Ordinary Share on October 3rd, 2025, which was the latest practicable business day prior to the announcement. The company will issue 3,333,333,330 Subscription Shares to raise gross proceeds of GBP 1,000,000 from participants in the subscription. Admission to trading on AIM is expected on or around October 9th, 2025.

Zeus Capital Limited acted as the company's sole agent in respect of the subscription. Participants in the subscription have subscribed based on terms and conditions set out in the subscription letter, which are conditional only on Admission.

Strategic Focus on Clean Energy Transition

In its latest Annual Report, released on September 30, 2025, the Directors highlighted the company's transition away from the petroleum sector to clean power. The company emphasized that its South Dorset and Yorkshire salt-cavern hydrogen storage and generation projects will constitute the company's future core focus. The funding will enable the company to advance its energy transition over the coming year by supporting both its planned hydrogen development activities and ongoing commitments in the petroleum sector.

This week's successful funding totals GBP 4.5 million, which Chief Executive Stephen Sanderson stated "now firmly places the Company in a strong position to advance its full portfolio of hydrogen storage and generation projects towards timely fruition."

Collaboration with National Gas and Government Support

The funding will enable the company to commission and deliver the necessary engineering concept and design studies essential to deliver the planned collaboration between its wholly owned subsidiary, UK Energy Storage ("UKEn"), and National Gas, as announced on October 1, 2025. The company views this collaboration as supporting and strengthening its activities related to securing government revenue support via the Hydrogen Transport and Hydrogen Storage Business Model ('HSBM') allocation rounds, now scheduled to commence in H1 2026.

Following meetings with the government's HSBM team on September 23rd, 2025, a new requirement emerged for both storage and pipeline operators to submit joint applications for government revenue support. This makes the delivery of such studies and planned collaboration key for UKEn's future success, according to the company.

Dorset Hydrogen Development Projects

The funding will also enable UKEn to progress a potential combined electrolytic hydrogen generation and local-scale salt-cavern hydrogen storage scheme in central eastern Dorset. The funding will allow necessary technical studies to be undertaken, 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, furthering discussions with energy infrastructure and sector specialists, to secure a key strategic joint venture partner for UKEn's hydrogen storage projects. Stephen Sanderson commented that the company can now commence necessary studies to ensure delivery on the collaboration with National Gas, describing it as "a key step that will strengthen our intended applications for government revenue support in the coming year."

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