LONDON (ShareCast) - (Sharecast News) - UK Oil & Gas tumbled on Monday after it conditionally raised gross proceeds of £1m in a discounted share placing to fund hydrogen storage projects.

The shares were placed at 0.05p each, which is a discount of about 37% to the closing share price on 2 August.

The company said it also plans to offer its existing retail shareholders a retail offer of new ordinary shares at the same issue price as the placing.

Proceeds from the placing will be used "to further specific activities required to materially advance the company's hydrogen storage projects," it said.

The funds will also allow the company to further negotiations with identified prospective strategic joint venture partners and conclude a land option agreement for a further hydrogen storage site.

Chief executive Stephen Sanderson said: "The funding, together with the support from leading UK energy and hydrogen-space infrastructure players, RWE, Sumitomo and SGN, means we can now materially advance our nationally significant projects towards the goal of a competitive Revenue Support application.

"It will also greatly help us to secure at least one major strategic partner as a joint venture participant and to enhance our lobbying efforts with our new Labour government, who to date seem motivated and committed to making hydrogen and its storage a fundamental part of Britain's renewable superpower ambition."

At 0925 BST, the shares were down 28% at 0.062p,

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