UK Oil & Gas plc said it has raised £2.2million to fund its share of initial drilling and seismic costs for the Turkish Resan oil project.
UKOG announced on 23 July 2020 that it had signed a binding heads of agreement with Aladdin Middle East Ltd (AME) to take a 50% interest in the oil appraisal and exploration project.
A total of 1,374,999,993 new ordinary shares were placed with an issue price of 0.16 pence per share.
UKOG said that the funds would also go towards purchasing long-lead drilling equipment, construction of a drilling pad, and necessary preparations for seismic acquisition.
“In the unexpected event that the PA [participation agreement] and JOA [joint operating agreement] are not entered into, the company will deploy the proceeds of the placing for working capital and to further developing its existing UK assets.”
AME is an independent oil company with 60 years of operational experience in Turkey.
Its corporate head office is in Wichita, Kansas, and its operational headquarters are in Ankara, Turkey.
UKOG has a 50% non-operated working interest in the 305 km² Resan licence but intends to take an active technical role in the licence’s five-well oil appraisal and step-out exploration drilling and 2D seismic programme due to start this year.
The company is currently in the final stages of negotiations to conclude the participation agreement and joint operating agreement with respect to the licence.
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