David Lenigas’s UK Oil & Gas Investments (LON:UKOG) has increased its stake in the Horse Hill discovery, onshore UK.
It has agreed to buy 2% of the HHDL holding company, which has a 65% direct interest in the discovery, for £352,000 paid in shares.
UKOG’s direct stake in the HHDL vehicle increases to 30%, and it also has a 1.32% indirect interest in HHDL via its shareholding in Angus Energy.
Altogether UKOG will now have the equivalent of around 20% of the Horse Hill project itself.
To complete the deal UKOG will issue 44mln new shares to the seller, Danadav Investments Ltd, priced at 0.8p per share.
Chairman David Lenigas, on Twitter, dispelled claims that UKOG was short of cash.
“Can folks stop banging on about UKOG being out of cash? Wrong! We bought the 2% of HH for shares because that's what seller wanted,” he told his 2,000 followers.
Today, this is the latest transaction among the Horse Hill stakeholders. And the deal is worth more than Alba Minerals agreed to pay Regency Mines on Thursday.
Alba yesterday agreed to pay Regency £300,000 in cash for 5% of HHDL, to increase its stake in HHDL to 10%.
Earlier, on Monday, UKOG bought 8% of HHDL for £580,000 which gave it 28% of the vehicle.