UK Oil & Gas Investments PLC (LON:UKOG) has further strengthened its position as the controlling stakeholder in the Horse Hill oil discovery, agreeing to acquire Solo Oil PLC’s 15% in the HHDL vehicle.
It will pay Solo £4.5mln of cash, which will be used for a simultaneous purchase of 234mln UKOG shares (4.2% of the company).
READ: UKOG takes majority position among Horse Hill stakeholders
The transaction increases UKOG’s stake in the Horse Hill discovery to 46.73%, as it will hold 71.9% of the HHDL vehicle which in turn owns 65% of the underlying asset.
At Horse Hill, the extended well testing programme is ongoing – following the initial successes with the conventional Portland oil reservoir.
"This further strategic acquisition firmly cements UKOG as the dominant player in the Horse Hill Portland and Kimmeridge oil discoveries and licences,” said Stephen Sanderson, UKOG chief executive.
“UKOG's three recent HHDL acquisitions provide a valuable controlling interest and exemplify the rationale behind our recent change of AIM status to an operating company.
“With the positive Portland test results to date, UKOG, supported by its remaining three coventurers, can now steer the way towards permanent HH oil production in 2019."