UK Oil & Gas Investments PLC (LON:UKOG) has increased its stake in the Horse Hill onshore oil prospect in the south of England through the acquisition of Flowermay’s entire 6% stake.
UKOG now owns 31.2% of the project, nicknamed the 'Gatwick Gusher', through a 48% stake in HHDL a consortium that has 65% interest in the two licences.
The cost of the acquisition is £1mln comprised of £150,000 payable in cash and £850,000 in UKOG shares.
Stephen Sanderson, UKOG's executive chairman, said: "This acquisition brings our overall interest in the Horse Hill project to 31.2%, a very material interest in a project with multiple oil bearing reservoirs that have been proven to flow at high initial commercial rates.
“The acquisition is a logical fit within our ongoing strategy to consolidate and expand our licence position in the new and potentially significant Kimmeridge Limestone oil province."