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).
"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."