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UK Oil & Gas Inv PLC - Acquisition of Further Interest in Horse Hill-1

RNS Number : 8297O
UK Oil & Gas Investments PLC
24 August 2017
 

UK Oil & Gas Investments PLC

("UKOG" or the "Company")

 

Completion of acquisition of further Interest in Horse Hill-1 Oil Discovery and Licenses, Weald Basin, UK

 

UK Oil & Gas Investments PLC (London AIM and ISDX: UKOG) announces that it has completed the acquisition of a 1.9% shareholding in Horse Hill Developments Ltd ("HHDL") from Regency Mines plc ("Regency"), previously announced on the 10 July 2017. The Company now holds a 32.435% beneficial interest in the onshore Weald Basin licences PEDL137 and PEDL246 ("the Licences").

 

The Licences, covering an area of 55 square miles (143 km2) north of Gatwick Airport, contain the Horse Hill-1 ("HH-1") Portland sandstone and Kimmeridge Limestone oil discoveries. As previously reported on 21 March 2016, HH-1 flow tested at a significant commercial aggregate stable dry oil rate of 1,688 barrels of oil per day from the uppermost two Kimmeridge Limestone intervals and the overlying Portland reservoir. Regulatory permissions are being sought for a significant long-term production testing and appraisal programme of the productive Kimmeridge Limestone and Portland reservoirs.

 

Transaction Summary

For a total consideration of £323,000, the Company will receive a further 1.235% beneficial interest in the Licences via the purchase of Regency's 1.9% shareholding in HHDL. The total Consideration, with an effective date of 28 June 2017, is comprised of £54,498 payable in cash and £268,502 in the form of the issue of new ordinary shares in UKOG ("Consideration Shares"). The calculation of the Consideration Shares is based on using a share price equivalent to the 30-day volume weighted average price of UKOG share prior to 29 June 2017.

 

As such application has been made for 17,361,862  new ordinary shares to be admitted to trading on AIM and it is anticipated that trading in such shares will commence on or around 30 August 2017.

 Following Admission, the Company's enlarged issued share capital will comprise 3,538,120,962 ordinary shares. The Company does not hold any shares in treasury. This figure of 3,538,120,962 ordinary shares may be used by shareholders in the Company as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change in their interest in, the share capital of the Company under the FCA's Disclosure and Transparency Rules. 

HHDL and the Company's Interest in the Licences

HHDL is a special purpose vehicle, which owns a 65% working interest and operatorship of the Licences. UKOG on completion will own a 49.9% beneficial shareholding in HHDL, which equates to a 32.435% net working interest in the Licences. The remaining 35% interest in the Licences is held by Magellan Petroleum (UK) Limited.

 

Qualified Person's Statement:

 

Stephen Sanderson, UKOG's Executive Chairman, who has over 35 years of relevant experience in the oil industry, has approved the information contained in this announcement. Mr Sanderson is a Fellow of the Geological Society of London and is an active member of the American Association of Petroleum Geologists.

 

For further information, please contact:

 

UK Oil & Gas Investments PLC

Stephen Sanderson / Kiran Morzaria                                            Tel: 01483 243450 

 

WH Ireland (Nominated Adviser and Broker)

James Joyce / James Bavister                                                          Tel: 020 7220 1666

 

Cenkos Securities PLC (Joint Broker)

Nick Tulloch / Neil McDonald                                                         Tel: 0131 220 6939

 

BPA Media/Square 1 Consulting (Public Relations)

Brian Alexander / David Bick                                                          Tel: 01483 243450 / 020 7929 5599

 

Glossary

 

discovery

a discovery is a petroleum accumulation for which one or several exploratory wells have established through testing, sampling and/or logging the existence of a significant quantity of potentially moveable hydrocarbons

production test or extended flow test

a long test period usually up to 6 months where hydrocarbons are flowed to surface through a test separator. Key measured parameters are oil and gas flow rates, downhole pressure and surface pressure. The overall objective is to identify the well's capacity to produce oil at a commercial flow rate and to recover oil in commercial quantities or volumes

limestone

a sedimentary rock predominantly composed of calcite (a crystalline mineral form of calcium carbonate) of organic, chemical or detrital origin. Minor amounts of dolomite, chert and clay are common in limestones. Chalk is a form of fine-grained limestone, being made of the remains of calcareous planktonic algae called coccoliths. The Kimmeridge Limestones are comprised of fine grained coccoliths, fine grained calcium carbonate mud, clay minerals, together with dark grey organic matter.

 

UKOG Licence Interests

 

The Company has interests in the following ten UK licences:

Asset

Licence

UKOG's Interest

Licence Holder

Operator

Area (km2)

Status

Avington 1

PEDL070

5%

UKOG (GB) Limited

IGas Energy Plc

18.3

Field in stable production

Baxters Copse 2

PEDL233

50%

UKOG Weald Limited

IGas Energy Plc

89.6

Appraisal/development well planned; licence extended to 2018

Broadford Bridge 3

PEDL234

100%

Kimmeridge Oil & Gas Limited 4

Kimmeridge Oil & Gas Limited 4

300.0

BB-1 & 1z drilling completed, well completion prior to extended testing underway

Holmwood 3

PEDL143

30%

UKOG

Europa Oil & Gas (Holdings) plc

91.8

Holmwood-1 exploration well planned in 2017

Horndean 1

PL211

10%

UKOG (GB) Limited

IGas Energy Plc

27.3

Field in stable production

Horse Hill 5

PEDL137

32.435%

Horse Hill Developments Ltd 

Horse Hill Developments Ltd 

99.3

Submitted planning application for long term production tests and drilling of two wells

Horse Hill 5

PEDL246

32.435%

Horse Hill Developments Ltd

Horse Hill Developments Ltd 

43.6

As above

Isle of Wight (Offshore) 3

P1916

100%

UKOG Solent Limited

UKOG Solent Limited

46.7

Preparing drilling planning submission

Isle of Wight (Onshore) 2, 3

PEDL331

65%

UKOG

TBA

200.0

Preparing drilling planning submission

Markwells Wood 2

PEDL126

100%

UKOG (GB) Limited

UKOG (GB) Limited

11.2

Submitted planning application for appraisal and field development

 

Notes:

1. Oil field currently in production.

2. Oil discovery pending development and/or appraisal drilling.

3. Exploration asset with drillable prospects and leads. Contains the extension of the Godley Bridge Portland gas discovery and the site of the forthcoming Broadford Bridge-1 well.

4. UKOG has a 100% interest in Kimmeridge Oil & Gas Limited, which has a 100% interest in PEDL234.

5. Oil discovery with recently completed flow testing.

6. UKOG has a direct 48% interest in HHDL, which has a 65% interest in PEDL137 and PEDL246.

 

The information contained within this announcement is deemed by the Company to constitute inside information under the Market Abuse Regulation (EU) No. 596/2014.

 


This information is provided by RNS
The company news service from the London Stock Exchange
 
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