UK Oil & Gas Investments, the company that made one of the biggest onshore oil discoveries in Britain near Gatwick airport, just applied to another London-based stock exchange to list its shares in order to get more people buying its stock.
UKOG said in a regulatory statement that it applied for admission of its issued share capital to trade on the ISDX Growth Market, a spin-off of the ICAP Securities & Derivatives Exchange (ISDX) designed for small-to-medium enterprises.
It said that it will remain trading on the London Stock Exchange’s mid-cap market AIM after admission to ISDX, which is tabled for around November 12, 2015.
“We are seeking admission to ISDX as a means of further increasing liquidity and trading options for our shareholders and creating an additional platform on which to promote the Company’s growth,” said Stephen Sanderson, UKOG’s CEO and Executive Chairman in a statement.
Meanwhile, David Lenigas, the Monaco-based Australian entrepreneur who stepped down from UKOGas a board member in July, was a bit more outspoken over the announcement:
Companies usually list on more than one stock exchange to enhance liquidity. In other words, by dual-listing, the shares are available to more people, are more accessible, and therefore it’s a lot easier for investors to buy and sell the stock.
In April this year, Britain went crazy when UKOG revealed that it discovered about 100 billion barrels of oil near Gatwick Airport. After much scrutiny from the markets and media over the find, independent analysis confirmed two months later that there is a whole glut of oil underneath the ground in the Horse Hill-1 oil field.
The board of energy exploration group Doriemeus confirmed that the oil field, which was at one point tipped to garner 100 billion barrels of oil for Britain by the oil exploration group UK Oil & Gas Investments (UKOG), has 271.4 million barrels of oil in place per square mile. This is more than the UKOG touted in April when they suggested the local area had around 158 million barrels of oil per square mile.
However, later that month, UKOG said it made a pre-tax net loss of £383,000 ($US602,327) for the six months ending March 31. This is an even bigger loss than the £290,000 ($US456,070) it made in the same period a year earlier.
However, it mentioned that it would be looking to expand its interests in other oil fields and is banking on the money it will make from oil recovered near Gatwick airport.