UK Oil & Gas plc posted a swing to a loss and a decrease in group revenue for the first half of 2025.
HORSE HILL
Interim results showed gross losses amounted to £0.47 million compared with a £0.22m profit for H1 2024.
The company said that the fall was due to a rise in the cost of sales to £0.78m (H1 2024: £0.40m), following higher operating costs and an increase in depletion, depreciation and amortisation charges to £0.10m (£0.05m).
Revenue fell to £0.31m (£0.63m) from the continuing shut-in at Horse Hill near Gatwick Airport in Surrey, in which Alba Mineral Resources plc owns 11.765%.
UKOG reported a retained loss of £1.37m (£1.43m), while administrative expenses fell by two thirds to £0.44m (£1.28m).
The group ended the first six months with one remaining onshore asset of Horse Hill, as it progresses its plans to focus on energy storage.
At the end of June, the company relinquished the Loxley project, within PEDL234, in Surrey after failing to secure a farm-out.
Broadford Bridge (PEDL234) in West Sussex was relinquished at the same time following refusal of planning permission.
The company sold its 10% interest in Horndean and 5% in Avington earlier in the year, and in 2024/2025 sold its 50% share in the Resan licence in Turkey, to operator Aladdin Middle East Ltd.
UKOG awaits approval for its new retrospective planning application for Horse Hill following the Supreme Court’s ruling in June 2024 on inclusion of end-use emissions in submissions.
At the time of the shut-in, the site had produced and exported 212,000 bbl of Brent quality crude from the Portland and Kimmeridge pools.
“The company is working closely with Surrey County Council (SCC) to restore planning consent via a new retrospective planning submission later in 2025,” added UKOG.
“It is, however, fair to say that, from a subsurface and remaining untapped recoverable resource perspective, Horse Hill remains a strategic asset during our transition to clean power.
“On the expected resumption of its profitable production operations, the company will assess its future development opportunities so that it can contribute to the funding of our clean energy business.”
UKOG expects to resume trading today after publication of its annual accounts and six-month report.