Unaudited results for six-months end 31 March 2026
Summary by AI BETAClose X
UK OIL & GAS PLC
("UKOG" or the "Company")
Unaudited results for the six-month period ended 31 March 2026
UK Oil & Gas Plc (AIM: UKOG) is pleased to announce its Interim Results for the period ended 31 March 2026. A copy of the Interim Results will also be made available on the Company's website: www.ukogplc.com.
CHIEF EXECUTIVE'S STATEMENT
The six months ended 31 March 2026 represented a period of significant strategic progress as UK Oil & Gas PLC accelerated the transition of its UK business from oil & gas to clean energy infrastructure, focused on strategic scale geological hydrogen storage.
During the period, our wholly owned subsidiary, UK Energy Storage ("UKEn"), established important strategic alliances through memorandums of understanding with National Gas and Wales & West Utilities. These relationships are important building blocks in our ambition to support the future development of our planned storage projects in Dorset and Yorkshire.
We also continued our engagement with the Dorset Clean Energy Super Cluster ("DCESC") and welcomed the Government's ongoing commitment to developing a UK hydrogen economy, including its support for hydrogen transport and storage infrastructure. We continue to monitor the evolution of the Government's hydrogen policy framework and believe that our Dorset and Yorkshire salt cavern storage projects are well positioned to support the UK's future clean energy infrastructure and industrial decarbonisation objectives.
From a corporate perspective, the restoration of trading in the Company's ordinary shares on AIM on 1 October 2025 was followed by successful placings in October and November 2025, raising £5 million. These funds have strengthened the Company's financial position and are supporting further technical and economic studies across our hydrogen storage portfolio.
During the period, we also successfully completed the Plugging and Abandonment ("P&A") of the Broadford Bridge-1/1z well, demonstrating our commitment to responsibly managing our legacy oil and gas assets.
As part of our strategic transition, the disposal of UKOG (GB) Limited became effective on 3 December 2025 following approval from the North Sea Transition Authority ("NSTA"). Subsequently, in June 2026, the Company agreed the sale of its entire 85.635% interest in the Horse Hill field and surrounding PEDL137 licence to Energy B PLC for £1.0 million, subject to customary regulatory approvals. This proposed transaction represents a further milestone in our planned exit from the UK onshore oil and gas sector and will enable management and financial resources to be fully focused on our hydrogen storage projects and new international energy opportunities under review.
I am most encouraged by the progress achieved during the period. The strategic partnerships established by UKEn, our strengthened financial position, plus the proposed disposal of our remaining UK onshore oil and gas interests, provide a solid foundation for the next phase of the Group's development. The Company is now well positioned to pursue opportunities in the UK's emerging hydrogen economy and in other already identified international energy projects.
OPERATIONAL REVIEW
Health, Safety and Environment
There were again no Lost Time Injuries, reportable environmental incidents or health issues on any of UKOG's sites during the period or post period. The operational team maintain focus on health, safety, and environmental performance as it is number one priority.
Ongoing liaison continues with the Health and Safety Executive and the Environment Agency ("EA") to ensure the Horse Hill site maintains its regulatory obligations.
Long Duration Energy Storage (LDES) Assets
In October 2025, UK Energy Storage Ltd ("UKEn") has executed Memoranda of Understanding ("MOUs") with National Gas Transmission plc ("National Gas") and Wales & West Utilities Limited ("WWU"), strengthening the strategic positioning of its hydrogen-ready gas storage portfolio.
The MOU with National Gas establishes the parties' intent to collaborate on the development of Project Union, the proposed national 100% hydrogen transmission backbone, and its direct connection to UKEn's planned onshore salt cavern hydrogen storage projects in East Yorkshire and South Dorset.
The collaboration is intended to support potential joint engagement under the Government's Hydrogen Transport and Hydrogen Storage Business Model ("HT&SBM"), with allocation rounds scheduled to commence in 2026. National Gas recognises the importance of large‑scale hydrogen storage in buffering supply and demand and enabling efficient operation of a national hydrogen pipeline system.
Project Union's first phase, currently targeted for operation by 2032, is expected to connect the East Coast hydrogen cluster, with envisaged routing also facilitating UKEn's East Yorkshire project. National Gas and UKEn both recognise that UKEn's planned South Dorset storage would be critical to facilitate Project Union's connection to the south, southwest of England and south Wales. The South Dorset project being, to date, the sole planned national scale hydrogen storage node in southern England offering strategic importance for the development of a national hydrogen economy. The south coast location also offers itself a key enabler for potential future maritime import and export to national networks.
In March 2026, UKEn also executed an MOU with WWU, the principal gas distribution network operator for Wales and the South West of England. This MOU provides a framework for collaboration on the development of a future hydrogen pipeline connection between WWU's proposed HyLine South West hydrogen transmission system and UKEn's planned South Dorset hydrogen-ready gas storage facility
The parties intend to work together to support potential joint applications under the HT&SBM, recognising the need for coordinated development of hydrogen transport and storage infrastructure.
Together, these MOUs demonstrate growing engagement from both national and regional gas network operators and reinforce UKEn's pivotal role as a potential provider of nationally significant hydrogen storage infrastructure, supporting the development of a resilient UK hydrogen economy.
Letters of support for UKEn's hydrogen storage projects in Dorset and East Yorkshire were received during the year from Sumitomo, SGN, RWE and The Solent Cluster. UKEn also became a founding member of the Dorset Clean Energy Super Cluster, centred on Portland Port, joined Hydrogen South West (HSW), became members of the UK Ammonia Alliance (UKAA) and continued an active programme of regulatory, political and stakeholder engagement.
Joining the UK Ammonia Alliance strengthens UKOG's participation in the rapidly developing hydrogen and ammonia value chain. This is highly complementary to UKEn's proposed Dorset hydrogen storage projects and Portland Port's potential role as a key import, export and distribution hub for future clean energy markets.
South Dorset Long Duration Energy Storage (UKEn 100%)
DEEP.KBB GmbH, one of Europe's leading salt cavern design and underground energy storage engineering groups, completed preliminary project design for the Company's proposed new South Dorset underground hydrogen storage facility, located west of Weymouth.
The design confirms the suitability of the site for a material scale hydrogen storage project, comprising 24 salt caverns (three clusters of 8 caverns) at a depth of ~1330m below surface. The project is fully in keeping with the Government's Clean Power 2030 ambitions.
The Company also continues to review additional strategic Dorset storage locations and collaboration that further enhance the Dorset portfolio development and optionality.
The company's South Dorset hydrogen projects are now positioned at the core of the ambitious £28 billion Dorset Clean Energy Super Cluster (DCESC), officially launched at UKREiiF in May 2025. With full backing from Dorset Council, the cluster brings together clean hydrogen production and storage, 2 GW of offshore wind in the English Channel, carbon capture and storage (CCS), and the development of a new deepwater facility for wind farm fabrication and maintenance-all centred around Portland Port. The company is actively collaborating with the DCESC team to advance its projects, strengthen stakeholder engagement, and build both regional and national political support.
The Company also continues to review additional strategic Dorset green hydrogen production opportunity that further enhance development optionality in the region.
East Yorkshire Hydrogen Storage (UKEn 100%)
The Company is planning a further hydrogen storage project in East Yorkshire, located nearby to the existing SSE Thermal/Equinor Aldbrough gas storage site. Technical studies and land acquisition efforts moving forward in order to mature the project to sufficient levels to achieve the eligibility and assessment criteria for the hydrogen transport and storage business model (HT&SBM) allocation rounds.
The Company is engaging DEEP.KBB to undertake a concept feasibility study for an East Yorkshire development and we look forward to sharing the results once completed.
Petroleum Assets
OG Asset Status Summary
|
Asset / Licence |
Status |
Notes |
Date of Change |
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Horse Hill Oil Field (PEDL137) |
Temporarily shut in, SPA signed in June 2026 |
Awaiting new retrospective planning consent following Supreme Court ruling; production to resume if approved, the impairment recognised in 2024 |
June 2024 (shut-in); planning application submitted at the end of April 2026
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|
|
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Broadford Bridge (PEDL234) |
Relinquished |
Planning extension refused; licence surrendered; commercial negotiations with Ceraphi Energy Ltd for re-purposing surface site to geothermal to be agreed or site to be restored, the impairment recognised in 2024. BB1z P&A complete February 2026. |
End-June 2025 |
|
|
|
|
|
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Horndean Oil Field (PL211, 10%) |
Sale completed on 3 December 2025 |
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Avington Oil Field (PEDL070, 5%) |
Sale completed on 3 December 2025 |
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Horse Hill Oil Field, PEDL137 (UKOG 85.635%)
The Horse Hill field and surrounding licences are operated by the Group's subsidiary, Horse Hill Developments Ltd ("HHDL"), in which UKOG holds a 77.9% interest. The licence interests are held by HHDL (65%) and UKOG (137/246) Ltd (35%).
Following the June 2024 Supreme Court ruling requiring the inclusion of downstream combustion emissions within the Environmental Impact Assessment ("EIA"), production at Horse Hill has remained temporarily suspended pending the restoration of planning consent. The Company has worked closely with its planning consultants, the Zetland Group, and Surrey County Council ("SCC") to address the requirements of the ruling and submitted a retrospective planning application in April 2026. Extensive ecological and environmental studies have been undertaken in support of the application and the asset remains on care and maintenance pending the planning determination.
Prior to the temporary suspension of production, the field had produced and exported approximately 212,000 barrels of Brent-quality crude oil from the Portland and Kimmeridge reservoirs.
As part of the Group's strategic transition towards clean energy infrastructure, the Company agreed in June 2026 to sell its entire 85.635% interest in the Horse Hill field and surrounding PEDL137 licence to energy B PLC for a cash consideration of £1.0 million, subject to customary regulatory and shareholder approvals.
Upon completion, the transaction will mark UKOG's exit from the UK onshore oil and gas sector and will enable management and financial resources to be fully focused on advancing the Group's hydrogen storage projects and pursuing new international energy opportunities under review.
Broadford Bridge, PEDL234 (UKOG (234) 100% (Relinquished))
In February 2026, as part of the Company's commitment to transitioning into clean energy, it successfully Plugged and Abandoned its Broadford Bridge-1/1z well. The operation, which commenced in late 2025 and finished on 4 February 2026, was carried out in full accordance with all pertinent regulatory requirements, agreed programmes and consents. This milestone confirms the Company's compliance with its regulatory obligations, demonstrating its continued commitment to responsible operations and asset stewardship during its transition into clean energy. West Sussex County Council, the governing local planning authority, were kept fully informed regarding the operation and its progress.
Horndean Oil Field (UKOG 10%)/ Avington Oil Field (UKOG 5%)
In line with our strategic move away from fossil fuels, on 3 December 2025, the Company completed the disposal of UKOG (GB) Limited, following receipt of approval from the North Sea Transition Authority ("NSTA").
FINANCIAL REVIEW
Results overview
The six months ended 31 March 2026 represented a period of continued strategic transition for the Group as it progressed its transformation from legacy oil and gas activities towards hydrogen storage and clean energy infrastructure.
During the period, the Group remained focused on maintaining financial discipline while advancing its flagship hydrogen storage projects in Dorset and East Yorkshire and managing its remaining oil and gas assets. The Group also continued to simplify its portfolio, completing the disposal of UKOG (GB) Limited on 3 December 2025 and subsequently agreeing the sale of its entire interest in the Horse Hill field and surrounding PEDL137 licence to energy B PLC for £1.0 million, subject to customary regulatory approvals.
The Group's financial position remained supported by the successful equity fundraisings completed during October and November 2025, which raised gross proceeds of over £5.0 million. These funds significantly strengthened the Group's liquidity position and provided working capital to support ongoing operations and the continued development of its hydrogen storage portfolio.
Group revenue for the six months ended 31 March 2026 amounted to £0.1 million (31 March 2025: £0.3 million) and was generated principally from crude oil sales prior to the disposal of UKOG (GB) Limited on 3 December 2025. The reduction in revenue compared with the prior period primarily reflects the continued suspension of production at the Horse Hill field together with the Group's strategic exit from its legacy oil and gas operations.
Cost of sales reduced significantly to £0.1 million (31 March 2025: £0.6 million), with depletion, depreciation and amortisation decreasing to £0.01 million (31 March 2025: £0.1 million) following the disposal and impairment of legacy producing assets.
Administrative expenses increased to £1.2 million (31 March 2025: £0.9 million), principally reflecting costs associated with the continued advancement of the Group's hydrogen storage strategy.
The Group reported an operating loss of £1.2 million (31 March 2025: £1.1 million) and the loss before taxation of £1.2 million (31 March 2025: £1.6 million).
Financial position
Total assets at 31 March 2026 amounted to £2.6 million (30 September 2025: £1.1 million). Development assets totalled £0.4 million (30 September 2025: £0.3 million), reflecting continued investment in the Group's hydrogen storage projects, while assets classified as held for sale at the previous year end were disposed of during the period.
Current liabilities decreased significantly to £3.6 million (30 September 2025: £5.2 million), primarily reflecting the settlement of historic trade creditors. Net liabilities at 31 March 2026 were £2.2 million (30 September 2025: £5.7 million). The improvement primarily reflects the equity capital raised during the period together with the reduction in trade creditors, partially offset by the loss recorded for the six months.
Cash flow and liquidity
Net cash outflow from operating activities was £2.6 million (31 March 2025: £1.4 million), reflecting the operating loss together with the settlement of trade creditors and decommissioning-related obligations.
During the period, the Company successfully completed equity fundraisings generating net proceeds of £4.7 million, providing the financial resources to support the Group's strategic transition and ongoing development activities. As a result, cash and cash equivalents increased to £2.1 million at 31 March 2026 (30 September 2025: £0.03 million). The strengthened cash position provides the Group with an appropriate level of working capital to continue progressing its hydrogen storage strategy.
Going concern
The Directors have carefully reviewed the Group's financial position and cash flow forecasts for a period of at least twelve months from the date of approval of these interim financial statements. In forming their assessment, the Directors have considered the Group's available cash resources, the successful equity fundraisings completed during the period, ongoing cost management initiatives and forecast expenditure on the Group's hydrogen storage projects. After considering the matters set out above, the Directors have concluded that it is appropriate to prepare the interim financial statements on a going concern basis.
For further information please contact:
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UK Oil & Gas PLC |
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Stephen Sanderson / Kris Bone / Guzyal Mukhametzhanova
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Tel: 01483 941493 |
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Zeus (Nominated Adviser and Broker) |
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James Joyce / Andrew de Andrade
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Tel: 0203 829 5000 |
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CMC Markets (Joint Broker) Douglas Crippen
Communications |
Tel: 0203 003 8632 |
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Brian Alexander |
Tel: 01483 941493 |
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The information contained within this announcement is deemed to constitute inside information as stipulated under the retained EU law version of the Market Abuse Regulation (EU) No. 596/2014 (the "UK MAR") which is part of UK law by virtue of the European Union (Withdrawal) Act 2018. The information is disclosed in accordance with the Company's obligations under Article 17 of the UK MAR. Upon the publication of this announcement, this inside information is now considered to be in the public domain.
Consolidated Income Statement (Unaudited)
for the six months ended 31 March 2026
|
|
|
6 months |
6 months |
|
|
|
31 March 2026 |
31 March 2025 |
|
|
|
(Unaudited) |
(Unaudited) |
|
|
|
£'000 |
£'000 |
|
|
|
|
|
|
Revenue |
|
123 |
314 |
|
Depletion, Depreciation and Amortisation |
|
(9) |
(98) |
|
Other Cost of sales |
|
(110) |
(456) |
|
|
|
|
|
|
|
|
|
|
|
Gross profit/ (loss) |
|
4 |
(240) |
|
|
|
|
|
|
Operating expenses |
|
|
|
|
Administrative expenses |
|
(1,198) |
(915) |
|
Exploration write offs |
|
(1) |
- |
|
Foreign exchange gains/ losses |
|
(1) |
3 |
|
|
|
|
|
|
Operating loss |
|
(1,196) |
(1,152) |
|
|
|
|
|
|
Net finance income / (cost) |
|
10 |
(459) |
|
Loss before taxation |
|
(1,186) |
(1,611) |
|
|
|
|
|
|
Taxation |
|
- |
- |
|
|
|
|
|
|
Retained loss for the period |
|
(1,186) |
(1,611) |
|
|
|
|
|
|
Retained loss attributable to: |
|
|
|
|
Owners of the parent |
|
(1,075) |
(1,241) |
|
Non-controlling interest |
|
(111) |
(370) |
|
|
|
(1,186) |
(1,611) |
|
There are no other comprehensive income or expenses during the two reported periods to disclose.
All operations are continuing.
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|||
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Earnings per share |
|
|
|
|
|
|
Pence |
Pence |
|
|
|
|
|
|
Basic and diluted |
2 |
(0.004) |
(0.007) |
Consolidated Statement of Financial Position (Unaudited)
as at 31 March 2026
|
|
|
31 March 2026 |
30 September 2025 |
31 March 2025 |
|
|
|
|
(Unaudited) |
(Audited) |
(Unaudited) |
|
|
|
|
£'000 |
£'000 |
£'000 |
|
|
|
|
|
|
|
|
|
Assets |
|
|
|
|
|
|
Non-current assets |
|
|
|
|
|
|
Development assets |
|
419 |
335 |
1,764 |
|
|
Oil & Gas properties |
|
- |
- |
955 |
|
|
Property, Plant & Equipment |
|
- |
2 |
13 |
|
|
|
|
|
|
|
|
|
Total non-current assets |
|
419 |
337 |
2,732 |
|
|
|
|
|
|
|
|
|
Current assets |
|
|
|
|
|
|
Assets held for sale |
|
- |
601 |
- |
|
|
Inventory |
|
- |
- |
2 |
|
|
Trade and other receivables |
|
119 |
166 |
824 |
|
|
Cash and cash equivalents |
|
2,085 |
32 |
373 |
|
|
Total current assets |
|
2,204 |
799 |
1,199 |
|
|
|
|
|
|
|
|
|
Total Assets |
|
2,623 |
1,136 |
3,931 |
|
|
|
|
|
|
|
|
|
Liabilities associated with assets held for sale |
|
- |
(201) |
- |
|
|
Trade and other payables |
|
(143) |
(1,569) |
(931) |
|
|
Borrowings |
|
(3,462) |
(3,462) |
(3,310) |
|
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Total current liabilities |
|
(3,606) |
(5,231) |
(4,241) |
|
|
|
|
|
|
|
|
|
Provisions |
|
(1,168) |
(1,591) |
(588) |
|
|
Non-current Liabilities |
|
(1,168) |
(1,591) |
(588) |
|
|
|
|
|
|
|
|
|
Total liabilities |
|
(4,774) |
(6,822) |
(4,829) |
|
|
|
|
|
|
|
|
|
Net liabilities |
|
(2,152) |
(5,684) |
(898) |
|
|
|
|
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
Share capital |
|
14,871 |
14,853 |
14,854 |
|
|
Share premium account |
|
119,344 |
114,643 |
116,810 |
|
|
Own shares held in trust |
|
(326) |
(326) |
(326) |
|
|
Share based payment and other reserve |
|
- |
- |
82 |
|
|
Accumulated losses |
|
(133,528) |
(132,453) |
(130,335) |
|
|
|
|
361 |
(3,283) |
1,085 |
|
|
Non-controlling interest |
|
(2,513) |
(2,401) |
(1,984) |
|
|
|
|
|
|
|
|
|
Total shareholders' equity |
|
(2,152) |
(5,684) |
(898) |
|
Statement of Cash Flows (Unaudited)
for the six months ended 31 March 2026
|
|
|
6 months |
6 months |
|
|
|
31 March 2026 |
31 March 2025 |
|
|
|
(Unaudited) |
(Unaudited) |
|
|
|
£'000 |
£'000 |
|
|
|
|
|
|
Cash flows from operating activities |
|
|
|
|
Loss before tax |
|
(1,186) |
(1,611) |
|
Depletion & impairment |
|
10 |
98 |
|
Finance costs |
|
- |
459 |
|
Movement in trade and other receivables |
|
48 |
(210) |
|
Movement in trade and other payables |
|
(1,010) |
(329) |
|
Movement in provisions |
|
(423) |
171 |
|
|
|
|
|
|
Net cash outflow from operating activities |
|
(2,561) |
(1,422) |
|
|
|
|
|
|
Cash flows from investing activities |
|
|
|
|
Expenditures on exploration & evaluation and development assets |
|
(106) |
(114) |
|
Expenditures on oil & gas properties |
|
- |
(12) |
|
Net cash outflow from investing activities |
|
(106) |
(126) |
|
|
|
|
|
|
Cash flows from financing activities |
|
|
|
|
Proceeds from issue of share capital |
|
4,719 |
882 |
|
Net cash inflow from financing activities |
|
4,719 |
882 |
|
Net change in cash and cash equivalents |
|
2,053 |
(666) |
|
|
|
|
|
|
Cash and cash equivalents at the beginning of the period |
|
32 |
1,039 |
|
|
|
|
|
|
Cash and cash equivalents at the end of the period |
|
2,085 |
373 |
Notes to the half-yearly results
1. Basis of preparation
As permitted by IAS 34, 'Interim Financial Reporting' has not been applied to these half-yearly results. The financial information of the Company for the six months ended 31 March 2026 has been prepared in accordance with the recognition and measurement principles of International Financial Reporting Standards, International Accounting Standards and Interpretations (collectively "IFRS") issued by the International Accounting Standards Board ("IASB") as adopted by the European Union ("adopted IFRS") and are in accordance with IFRS as issued by the IASB. The condensed interim financial information has been prepared using the accounting policies which will be applied in the Company's statutory financial statements for the period ending 30 September 2026.
The financial information shown in this publication is unaudited and does not constitute statutory accounts as defined in Section 434 of the Companies Act 2006. Comparative figures for the financial year ended 30 September 2025 have been derived from the statutory accounts for 30 September 2025. The statutory accounts have been delivered to the Registrar of Companies. The auditors have reported on those accounts; their report was unqualified and did not contain statements under section 498(2) or 498(3) of the Companies Act 2006.
2. (Loss) per share
The calculation of the basic and diluted (loss) per share is based upon
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6 months |
|
6 months |
|
|
|
31 March 2026 |
|
31 March 2025 |
|
|
|
(Unaudited) |
|
(Unaudited) |
|
Group |
|
£'000 |
|
£'000 |
|
(Loss) attributable to ordinary shareholders |
|
(1,075) |
|
(1,241) |
|
|
|
|
|
|
|
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Number |
|
Number |
|
|
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Weighted average number of ordinary shares for |
28,631,712,838 |
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17,217,274,165 |
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3. Availability of the Interim Report
Copies of the report will be available from the Company's website www.ukogplc.com
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