UK Oil & Gas PLC

("UKOG" or the "Company")

PEDL234 Loxley gas discovery update

UK Oil & Gas PLC (London AIM: UKOG) is pleased to announce that the North Sea Transition Authority ("NSTA") has granted its consent to a modified PEDL234 Retention Area ("RA") work programme. The revision will permit the Company to focus licence activities entirely upon the acceleration of the planned appraisal campaign of its material 100%-owned Loxley gas discovery.

In accordance with the revised RA programme, the Company has agreed to commence the Loxley-1 appraisal well by 30^th June 2024. Loxley-1, designed to confirm the commercial viability of the discovery, is planned to be completed as a future production well, one of only two wells required to produce Loxley's entire estimated material recoverable gas resources (see the Annual Report and Accounts Table 2 and RNS of 20^th September 2020). The second production well, designed to maintain the desired plateau gas production rate, must be drilled by summer 2029.

In the event Loxley-1 confirms the discovery's commercial viability, the Company has also agreed to acquire 10 km² of 3D seismic over the field by 30^th June 2025 and to submit a Field Development Plan for NSTA consent by the end of 2025.

Qualified Person's Statement

Matt Cartwright, UKOG's Commercial Director, who has 39 years of relevant experience in the global oil industry, has approved the information contained in this announcement. Mr Cartwright is a Chartered Engineer and member of the Society of Petroleum Engineers.

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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.