UK Oil & Gas raises £3m in share placing

(Sharecast News) - UK Oil & Gas has raised £3m to help further support its transition away from fossil fuels, the energy developer confirmed on Thursday. The AIM-listed firm said it had raised the gross proceeds through a placing of new ordinary shares at 0.03p per share.

The cash will be used to support its planned hydrogen development activities, including salt cavern hydrogen storage projects in South Dorset and East Yorkshire.

In particular, it will enable UKOG to commission and deliver the engineering concept and design studies needed to deliver its recently announced planned collaboration with National Gas Transmission.

UKOG announced the deal between National Gas, the UK's principal pipeline operator, and its UK Energy Storage division on Wednesday.

Under the deal, the two will collaborate on the development and implementation of Project Union, including its direct connection to UKOG's salt cavern hydrogen storage projects.

Project Union is National Gas's programme to develop and build a large-scale hydrogen transmission network in the UK.

Stephen Sanderson, UKOG chief executive, said: "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 support in the coming year."