UK Oil and Gas Investments (UKOG) has raised a further £10 million in cash, giving a total of £16.5million raised to-date in 2017.
The company is now fully funded to deliver planned drilling and testing programme in the south of England through 2018.
Optimised sequential flow testing is now underway across nine zones at the firm’s Broadford Bridge-1z (“BB-1z”) prospect.
The AIM-listed firm secured the extra £10million through a loan agreement.
The first tranche of £7.5million has been drawn down by the company, with the remaining balance expected to be drawn down by the year end.
The loan, as a source of general working capital, will enable the company to carry out its forward drilling and testing programme over the coming 12 months.
This programme includes the completion of the BB-1z flow tests, the forthcoming production testing and appraisal drilling programme at Horse Hill and the drilling and testing of the Holmwood exploration prospect, a Horse Hill-1 and BB-1 geological look-alike.
Stephen Sanderson, executive chairman, said: “This £10 MM funding, the largest in the company’s short history, ensures that our stated drilling and testing programme, spanning four wells over the next 12 months, is fully funded.
“The programme has key regulatory permits in place, is designed to further appraise the wider Kimmeridge continuous oil deposit plus the Horse Hill Portland oil discovery.
“Its overall aim is to provide stable commercial production and cash flow by early 2019. A positive programme outcome will give the company a solid base for further drilling and development of the significant untapped Kimmeridge resource-base underlying its extensive licence interests.2
“The flow testing at BB-1z continues to be a key element of the Company’s wider programme and we remain highly encouraged by the natural flow of further hydrocarbons to surface.”
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