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UKOG shares drop as equity funding is considered

It comes as the British oil junior advances plans for new drilling and well testing across southern England,
Trader shock
UKOG shares dropped 16%

The price of UK Oil & Gas Investments PLC (LON:UKOG) shares dropped back 16% on Friday after the onshore driller admitted it is working on an equity raise.

UKOG, in a statement, acknowledged recent speculation and said it was considering raising funds.

It comes as the company advances plans for new drilling and well testing across southern England, where it has a number of assets.

READ: UKOG details conventional resources onshore UK

Earlier this week, for example, the company detailed its current conventional oil and gas resource inventory – revealing some 21mln barrels of oil equivalent – though that doesn’t include any of the high potential, unconventional Kimmeridge play which includes the so-called Gatwick Gusher Horse Hill project, which was speculated to represent a multi-billion barrel project.

In Friday’s statement, UKOG said it was progressing discussions regarding the possible funding, and it would make a further announcement if arrangements were finalised.

“Terms including amount and pricing are to be agreed and there can be no certainty a transaction will be finalised,” it added.

On AIM, UKOG shares fell 16% to trade at 1.05p.

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