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UKOG Uk Oil & Gas Plc

0.065
0.0075 (13.04%)
Last Updated: 10:13:39
Delayed by 15 minutes
Share Name Share Symbol Market Type Share ISIN Share Description
Uk Oil & Gas Plc LSE:UKOG London Ordinary Share GB00BS3D4G58 ORD GBP0.000001
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  0.0075 13.04% 0.065 0.06 0.07 0.065 0.0575 0.0575 31,577,434 10:13:39
Industry Sector Turnover Profit EPS - Basic PE Ratio Market Cap
Finance Services 1.78M -4.87M -0.0015 -0.40 1.95M

UK Oil & Gas Investments PLC Acquisition Update - Horse Hill-1 (5219K)

10/07/2017 7:00am

UK Regulatory


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TIDMUKOG

RNS Number : 5219K

UK Oil & Gas Investments PLC

10 July 2017

UK Oil & Gas Investments PLC

("UKOG" or the "Company")

Agreement to Acquire a further Interest in Horse Hill-1 Oil Discovery and Licences, Weald Basin, UK

UK Oil & Gas Investments PLC (London AIM and ISDX: UKOG) announces that it has agreed to acquire a 1.9% shareholding in Horse Hill Developments Ltd ("HHDL") from Regency Mines plc ("Regency"). On completion, the Company will hold 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 km(2) ) 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. 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 GBP323,000, 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 2016, is comprised of GBP54,498 payable in cash and GBP268,502 in the form of the issue of new ordinary shares in UKOG ("Consideration Shares"). The Consideration Shares are calculated on the 30-day volume weighted average price prior to 29 June 2017. Completion of the acquisition is conditional on the consent of HHDL. A further announcement will be made on completion.

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.

Following communications with Surrey County Council ("SCC"), we now understand the Horse Hill planning application will be determined at the scheduled SCC Planning Committee meeting of either August or September 2017. The planning application seeks consent to long-term production test HH-1 and to drill two further wells. The Company's plans remain unchanged in that HH-1 testing will directly follow the BB-1 flow test operation, with an HH-1 start expected in Q4 2017.

Stephen Sanderson, UKOG's Executive Chairman, commented:

"This acquisition fits perfectly within UKOG's stated strategy to further consolidate and increase its holdings in the Kimmeridge oil play in the Weald. The licences remain a significant part of UKOG's extensive Kimmeridge portfolio, containing both the HH-1 oil discovery and its likely continuation across much of the licenced area.

In addition to HH-1 Kimmeridge oil, the Portland oil discovery remains a significant potential early monetisation asset, which, given the 323 bopd test rate, we believe has a high chance of commercial viability.

Given a successful production test outcome, both the Kimmeridge and Portland remain on course for stable oil production by end 2018/early 2019."

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

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          a long test period usually up to 6 
  test or extended    months where hydrocarbons are flowed 
  flow test           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       Licence Holder      Operator      Area (km(2) )          Status 
                                 Interest 
----------------  ---------  ---------------  ---------------  ---------------  --------------  ---------------------- 
                                                 UKOG (GB)       IGas Energy                        Field in stable 
Avington (1)       PEDL070          5%            Limited            Plc             18.3             production 
----------------  ---------  ---------------  ---------------  ---------------  --------------  ---------------------- 
Baxters Copse      PEDL233         50%           UKOG Weald      IGas Energy         89.6        Appraisal/development 
(2)                                               Limited            Plc                         well planned; licence 
                                                                                                   extended to 2018 
----------------  ---------  ---------------  ---------------  ---------------  --------------  ---------------------- 
                                               Kimmeridge Oil   Kimmeridge Oil 
Broadford Bridge                               & Gas Limited    & Gas Limited                        BB-1 drilling 
 (3)               PEDL234         100%             (4)              (4)             300.0             underway 
----------------  ---------  ---------------  ---------------  ---------------  --------------  ---------------------- 
Holmwood (3)       PEDL143         30%              UKOG         Europa Oil &        91.8             Holmwood-1 
                                                                Gas (Holdings)                     exploration well 
                                                                     plc                            planned in 2017 
----------------  ---------  ---------------  ---------------  ---------------  --------------  ---------------------- 
                                                 UKOG (GB)       IGas Energy                        Field in stable 
Horndean (1)        PL211          10%            Limited            Plc             27.3             production 
----------------  ---------  ---------------  ---------------  ---------------  --------------  ---------------------- 
Horse Hill (5)     PEDL137       32.435%         Horse Hill       Horse Hill         99.3         Submitted planning 
                                                Developments     Developments                    application for long 
                                                    Ltd              Ltd                         term production tests 
                                                                                                  and drilling of two 
                                                                                                         wells 
----------------  ---------  ---------------  ---------------  ---------------  --------------  ---------------------- 
                                                 Horse Hill       Horse Hill 
                                                Developments     Developments 
Horse Hill (5)     PEDL246       32.435%            Ltd              Ltd             43.6              As above 
----------------  ---------  ---------------  ---------------  ---------------  --------------  ---------------------- 
Isle of Wight                                   UKOG Solent      UKOG Solent                      Preparing drilling 
 (Offshore) (3)     P1916          100%           Limited          Limited           46.7         planning submission 
---------------- 
Isle of Wight 
 (Onshore) (2,                                                                                    Preparing drilling 
 3)                PEDL331         65%              UKOG             TBA             200.0        planning submission 
----------------  ---------  ---------------  ---------------  ---------------  --------------  ---------------------- 
Markwells Wood     PEDL126         100%          UKOG (GB)        UKOG (GB)          11.2         Submitted planning 
 (2)                                              Limited          Limited                          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

END

ACQSSWEFUFWSELW

(END) Dow Jones Newswires

July 10, 2017 02:00 ET (06:00 GMT)

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