UK Oil & Gas Investments PLC (London AIM: UKOG) is pleased to announce that it has raised gross proceeds of £5.5 million via an oversubscribed share placing.

The placing's issue price of 0.9 pence per share represents an approximate 12% discount to the closing price on 13th June 2018, the date the pricing of the issue was determined, and prior to the receipt of the Oil and Gas Authority's Horse hill Extended Flow Test ("EWT") consent as announced on 14th June 2018. A total of 611,111,105 new ordinary shares in UKOG have been placed with new and existing investors.

Use of Proceeds

The net placing proceeds will be used to implement UKOG's stated wider corporate strategy as follows:

• Funding its portion of the Horse Hill-2 appraisal well, which in the event of a successful EWT outcome, is planned to directly follow the EWT in late 2018/early 2019. The well will be drilled as a future Portland producing well.
• Prepare and submit regulatory applications to convert Horse Hill into production given a successful EWT outcome
• Lease two well sites, prepare and submit regulatory applications for two new exploration wells in PEDL234, aimed at demonstrating that the Kimmeridge Limestone play is commercially viable across UKOG's extensive licence interests
• Lease well site, prepare and submit regulatory applications necessary to drill and appraise the Arreton oil discovery, which currently has an estimate of 10.2 million barrels UKOG Net P50 Contingent (recoverable) Resources.
• Funding UKOG's share of the planned Portland and Kimmeridge Holmwood exploration well which currently has an estimate 0.92 million barrels UKOG Net P50 Prospective Resources

Admission and Settlement

Application will be made for the admission to trading on AIM of 611,111,105 new Ordinary Shares. Admission is expected to occur on 21 June 2018. Following Admission, the Company will have 4,504,189,479 Ordinary Shares in issue. There are no shares held in treasury. The total voting rights in the Company are therefore 4,504,189,479 and shareholders may use this figure as the denominator by which they are required to notify their interest in, or change to their interest in, the Company under the Disclosure Guidance and Transparency Rules. The placing is conditional upon the terms of a placing agreement with WH Ireland and shares being admitted to trading on AIM.