UKOG ANNOUNCED PLACEMENT OF 266,666,667 NEW SHARES TO RAISE 6 MILLION POUNDS

Yesterday UKOG announced it raised 6 million Pounds by the placing 266,66,667 new shares at 2.25 pence a piece.

Originally, the target was to raise 4.5 million Pounds via the placement of 200 million new shares but it seemed the placement was oversubscribed. On top of that the subscription was done inside of an hour upon announcement, beating the 24 hour period alotted. This means that there are new investors coming abroad and they are fully researched on the potential of UKOG otherwise the placement would not have been snapped out within the hour. Shares of UKOG is in DEMAND.

According to the press release, the 6 million Pounds will be used for the following:

1) To further the company's interest in Horse Hill and the Weald Basin
2) To invest into new oil and gas companies that fall within the company's investment strategy
3) For general purposes

1) is interesting. It means that the company may be increasing its stake in Horse Hill by buying out a partner. With the potential oil in place measuring up to 15 billion barrels, it would mean that UKOG will have a bigger share of the bounty

2) means that UKOG may be acquiring some stakes in existing and productive oil fields within the Weald Basin. This should potentially increase its revenue base.

In my opinion, some parts of the money will be used to conduct the flow test at Horse Hill and perhaps to start the first drill at Isle of Wight as its licence will expire on 31 January, 2016.

In Horse Hill, it is fortunate that NUTECH and Schlumberger are assisting UKOG in determining the right spot from which to conduct the flow test.

The share price might fall a bit at the open on Thursday, 11 June, 2015, but I think it should recover strongly as UKOG reveals in detail its intentions.

My disclosure: I am long UKOG.