UKOG completes acquisition of a further 10 percent interest in PEDL143
Wednesday, Dec 06, 2017
UK Oil & Gas Investments PLC (London AIM: UKOG), announces a further conversion of loan notes and the completion of the acquisition of a further 10% interest in PEDL143.

Loan Conversion

In relation to the £10 million financing announced on 15 November 2017 ("Loan"), UKOG has received a notice of exercise from Cuart Investments PCC Ltd and YA II PN Ltd to convert part of the Loan, with an aggregate par value of £500,000, into equity.

The Company has therefore issued today 14,159,092 new ordinary shares to the Investors ("Loan Conversion Shares"). Loan Conversion Shares will rank pari passu in all respects with the existing ordinary shares.

After today's conversion, the Par Value outstanding on the first £7.5 million tranche of the Loan is £6 million. The second and final £2.5 million tranche will be paid to the Company on 31 December 2017.

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 £250,000, with a limit of £3 million per quarter, unless otherwise agreed by the Company.

Completion of PEDL143 Acquisition, Holmwood Prospect, Weald Basin, UK

Further to our announcement dated 25 September 2017, UKOG is pleased to announce that it has received final regulatory consent from the Oil and Gas Authority and has completed the acquisition of  a further 10% interest in UK onshore Weald Basin licence PEDL143, from Warwick Energy Exploration and Production Limited ("Warwick").

This takes UKOG's interest in PEDL143 to 40%. PEDL143 covers 35.5 square miles and is located to the immediate west of Horse Hill licence PEDL137, in which UKOG has a 32.435% interest. The total Purchase Price is payable via the issue to Warwick of 9,382,271 new ordinary shares in UKOG ("Acquisitions Shares").

As previously reported, the Company will participate in the drilling of the planned Holmwood-1 exploration well which will test the Holmwood prospect's identified Portland sandstone, Kimmeridge limestone and Corallian sandstone reservoir objectives.

Application has been made for the Loan Conversion Shares and the Acquisition Shares to be admitted on AIM and it is anticipated that trading in such shares will commence on or around 11 December 2017.

Following Admission of both the Loan Conversion Shares and the Acquisition Shares, the Company's enlarged issued share capital will comprise of 3,597,200,095 ordinary shares. The Company does not hold any shares in treasury. This figure of 3,597,200,095 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.

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