AIM-listed firm UK Oil and Gas Investments has completed a £5.5m fundraising to fund its portion of an appraisal well at the Horse Hill site near Gatwick airport.
A total of 611.11m new UKOG shares were placed with new and existing investors on Friday at a price of 0.9p per share, representing an approximate 12% discount to the stock's closing price on 13 June.

UKOG, which had responded to media speculation a week ago to confirm it was considering raising the funds, wants the proceeds as it and its partners look to push forward with the Horse Hill-2 appraisal well, prepare and submit regulatory applications to convert Horse Hill into production, lease three well sites and pay for the firm's share of the Portland and Kimmeridge Holmwood exploration wells.

Separately, UKOG revealed that its wholly-owned subsidiary, Kimmeridge Oil & Gas, had applied to West Sussex County Council to extend planning permission at its Broadford Bridge-1/1z asset, in which it has a 100% interest, for a further 18 months to 31 March 2020.

Stephen Sanderson, UKOG's executive chairman, said, "The extension, if granted, will provide time to incorporate the learnings from future planned Kimmeridge operations at Horse Hill and PEDL234 into the design and objectives of a possible new BB-1y sidetrack and test programme."

As of 0840 BST, UKOG shares had tumbled 22.60% to 1.16p.

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