LONDON (ShareCast) - (Sharecast News) - The share price of UK Oil & Gas dropped on Tuesday morning after the company announced it further funding for hydrogen projects by its wholly owned subsidiary UK Energy Storage (UKEn).
The company said that "due to continued investor demand" it has accepted a £1m investment by means of a direct subscription of new ordinary share at a price of just 0.03p per share - the same price as recent placings but a 9% discount to last Friday's closing price.

The proceeds will enable the company to accelerate primary technical and economic modelling studies and works at its South Dorset and Yorkshire salt-cavern hydrogen storage and generation projects, which have become UKOG's core focus since announcing the transition away from petroleum into clean power.

"By funding both its planned hydrogen development activities and ongoing petroleum sector commitments this material placing will enable the Company to advance its energy transition over the coming year," the company said.

Specifically, the proceeds will help commission and deliver necessary engineering concept and design studies which UKOG said are essential to deliver the planned collaboration between UKEn and National Gas.

UKEn will also be able to progress a potential combined electrolytic hydrogen generation and local scale salt-cavern hydrogen storage scheme in central eastern Dorset, with the funding allowing technical studies to be undertaken.

Shares were down 13.1% at 0.027p by 1052 BST.

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