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UK Oil & Gas ups stake in Arreton project with Solo Oil deal

Its stake rises to 95% via the £350,000 transaction
oil and gas operations
The payment will be made up of cash and shares

UK Oil & Gas Plc (LON:UKOG) chief executive described himself as delighted with a deal to increase the explorer’s stake in the Arreton oil discovery, on the Isle of Wight, acquiring 30% from Solo Oil PLC (LON:SOLO).

UKOG will pay £350,000 to acquire the stake, to take its overall ownership of the project to 95%.

The consideration will comprise £90,450 of cash and the remainder will be made up of UKOG shares, some 17.98mln shares, priced at 1.4428p (the average market price over a five day period ended 10 December).

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"We are delighted to acquire this further substantial share of the Arreton oil discovery, giving the company a material 14.9 million barrels of net attributable discovered PEDL331 recoverable resources. 

“The first Arreton appraisal well, Arreton-3, is now scheduled to be drilled, cored and tested in the first quarter of 2020, with the drilling of the larger look-alike Arreton South exploration prospect planned to follow after completion of Arreton-3 flow testing.

“We look forward to starting the journey towards realising the Isle of Wight Licence's considerable conventional oil resource potential."

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