UK Oil & Gas Investments PLC Loan Conversion (3621B)

TIDMUKOG

RNS Number : 3621B

UK Oil & Gas Investments PLC

09 January 2018

UK Oil & Gas Investments PLC

("UKOG" or the "Company")

Loan Conversion

UK Oil & Gas Investments PLC (London AIM: UKOG), announces that, in relation to the GBP10 million financing announced on 15 November 2017 ("the Loan"), it has received a notice of exercise from Cuart Investments PCC Ltd and YA II PN Ltd ("Investors") to convert part of the Loan, with an aggregate par value of GBP500,000, into equity ("Conversion Notice").

The Company has therefore allotted 18,581,144 new ordinary shares to the Investors ("Investor Shares"). The Investor Shares will rank pari passu in all respects with the existing ordinary shares.

Application has been made for these New Ordinary Shares to be admitted to trading on AIM and it is anticipated that trading in such shares will commence on or around 15 January 2018.

The Company has received the second and final tranche of the loan note at the end of last year which increased the outstanding loan amount to GBP7.5 million. After today's conversion, the Par Value outstanding on the Loan is GBP7 million.

Following Admission, the Company's enlarged issued share capital will comprise 3,649,287,689 ordinary shares. The Company does not hold any shares in treasury. This figure of 3,649,287,689 ordinary shares may be used by shareholders in the Company as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change in their interest in, the share capital of the Company under the FCA's Disclosure and Transparency Rules.

Loan Terms

The terms of the Loan, as stated by the Company on 15 November 2017, includes a provision that for as long as any portion of the Loan is outstanding, neither the Investors nor any of their affiliates;

i. shall hold any net short position with respect to the equity of UKOG and

ii. can trade more than 15 % of the number of UKOG shares that have traded in a trading day.

The Loan is convertible in tranches of not less than GBP250,000, with a limit of GBP3 million per quarter, starting from 15 November 2017, unless otherwise agreed by the Company.

Options

There were 35 million options held by manament and consultants which were due to expire on 31 December 2017. However, given the ongoing activities at the Broadford Bridge well site and the forthcoming publication of the Company's Annual Accounts, the holders of these options were prevented from exercising these options under the provisions of UKOG's Share Dealing Code. As such, the exercise period is deemed to be extended until the date which falls ten business days after the later of the date on which the option holder ceases to be an insider (as defined in the Criminal Justice Act 1993 and the Financial Services and Markets Act 2000) or the date on which the option holder is no longer restricted from dealing under the terms of UKOG's Share Dealing Code, or is otherwise no longer prohibited.

For further information, please contact:

UK Oil & Gas Investments PLC

   Stephen Sanderson / Kiran Morzaria                                     Tel: [phone] 

WH Ireland (Nominated Adviser and Broker)

   James Joyce /James Sinclair-Ford                                           Tel: [phone] 

Cenkos Securities PLC (Joint Broker)

Joe Nally / Leif Powis Tel: [phone]

Public Relations

   Brian Alexander / David Bick                                                    Tel: [phone] 

UKOG Licence Interests

The Company has interests in the following nine UK oil and gas licences:

 
Asset              Licence        UKOG's       Licence Holder      Operator      Area (km(2) )          Status 
                                 Interest 
----------------  ---------  ---------------  ---------------  ---------------  --------------  ---------------------- 
                                                 UKOG (GB)       IGas Energy                        Field in stable 
Avington (1)       PEDL070          5%            Limited            Plc             18.3             production 
----------------  ---------  ---------------  ---------------  ---------------  --------------  ---------------------- 
Baxters Copse      PEDL233         50%           UKOG Weald      IGas Energy         89.6        Appraisal/development 
(2)                                               Limited            Plc                         well planned; licence 
                                                                                                   extended to 2018 
----------------  ---------  ---------------  ---------------  ---------------  --------------  ---------------------- 
Broadford Bridge   PEDL234         100%        Kimmeridge Oil   Kimmeridge Oil       300.0        BB-1 & 1z drilling 
(3)                                            & Gas Limited    & Gas Limited                    completed, testing of 
                                                    (4)              (4)                            multiple zones 
                                                                                                       underway 
----------------  ---------  ---------------  ---------------  ---------------  --------------  ---------------------- 
Holmwood (3)       PEDL143         40%              UKOG         Europa Oil &        91.8             Holmwood-1 
                                                                Gas (Holdings)                     exploration well 
                                                                     plc                            planned in 2018 
----------------  ---------  ---------------  ---------------  ---------------  --------------  ---------------------- 
                                                 UKOG (GB)       IGas Energy                        Field in stable 
Horndean (1)        PL211          10%            Limited            Plc             27.3             production 
----------------  ---------  ---------------  ---------------  ---------------  --------------  ---------------------- 
Horse Hill (5)     PEDL137       32.435%         Horse Hill       Horse Hill         99.3        Planning Permission & 
                                                Developments     Developments                    EA permit granted for 
                                                    Ltd              Ltd                         production tests and 
                                                                                                       two wells 
----------------  ---------  ---------------  ---------------  ---------------  --------------  ---------------------- 
                                                 Horse Hill       Horse Hill 
                                                Developments     Developments 
Horse Hill (5)     PEDL246       32.435%            Ltd              Ltd             43.6              As above 
----------------  ---------  ---------------  ---------------  ---------------  --------------  ---------------------- 
Isle of Wight 
 (Onshore) (2,                                                                                    Preparing Arreton-3 
 3)                PEDL331         65%              UKOG             UKOG            200.0        planning submission 
----------------  ---------  ---------------  ---------------  ---------------  --------------  ---------------------- 
Markwells Wood     PEDL126         100%          UKOG (GB)        UKOG (GB)          11.2         Submitted planning 
 (2)                                              Limited          Limited                          application for 
                                                                                                  appraisal and field 
                                                                                                      development 
----------------  ---------  ---------------  ---------------  ---------------  --------------  ---------------------- 
 

Notes:

1. Oil field currently in production.

2. Oil discovery pending development and/or appraisal drilling.

3. Exploration asset with drillable prospects and leads. PEDL234 contains the Broadford Bridge-1 and 1z

discovery well and the extension of the Godley Bridge Portland gas discovery.

4. UKOG has a 100% interest in Kimmeridge Oil & Gas Limited, which has a 100% interest in PEDL234.

5. Oil discovery with recently completed flow testing.

6. UKOG has a direct 49.9% interest in HHDL, which has a 65% interest in PEDL137 and PEDL246.

The information contained within this announcement is deemed by the Company to constitute inside information under the Market Abuse Regulation (EU) No. 596/2014.

This information is provided by RNS

The company news service from the London Stock Exchange

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January 09, 2018 06:28 ET (11:28 GMT)