UK Oil & Gas Investments PLC Pre-Completion of Acquisition of 100% in Licence (4515G)

TIDMUKOG

RNS Number : 4515G

UK Oil & Gas Investments PLC

05 August 2016

UK Oil & Gas Investments PLC

("UKOG" or the "Company")

Pre-completion of acquisition of 100% interest in 300 sq km License in the Weald Kimmeridge Limestone Oil Province (PEDL234) and a 22.5% interest in the Isle of Wight licence P1916 (taking UKOG's interest to 100%)

As announced on 13 June 2016 UK Oil & Gas Investments PLC (London AIM and ISDX: UKOG) entered into agreements with Celtique Energie Petroleum Limited and Magellan Petroleum (UK) Limited respectively to acquire 100% ownership of PEDL234, the 300 sq km (116 sq miles) licence in the Weald Basin, and a 22.5% interest in the Isle of Wight licence P1916 (the "Licences"). The announcement can be found at http://irpages2.equitystory.com/websites/rns_news/English/1100/news-tool---rns---eqs-group.html?article=24532272&company=ukog

UKOG is pleased to report that the two-year extension of PEDL234 and the normal regulatory approvals for the Licences have been granted by the Oil and Gas Authority and, as such, the pre-conditions to the agreements have been met.

As part of the consideration payable under the PEDL234 agreements, UKOG has applied for the admission to trading on AIM and the ISDX Growth Market of 142,648, 831 new ordinary shares ("New Shares") in the Company. Trading of the New Shares is expected to commence on or around 11 August 2016 ("Admission"). Following Admission, the Company's issued share capital will consist of 2,496,652,300 ordinary shares ("Ordinary Shares"), with no Ordinary Shares held in treasury. Therefore, shareholders may use the above figure of 2,496,652,300 Ordinary Shares as the denominator for the calculations by which they will determine if they are required to notify their interest, or a change to their interest, in UKOG under the FCA's Disclosure and Transparency Rules.

The Company will confirm once these New Shares have been admitted, which will complete the transaction.

About the Licence

The acquisition of PEDL234 more than doubles the Company's net acreage holdings in the prime Kimmeridge Limestone Oil province, as proven by the Horse Hill-1 ("HH-1") oil discovery which, as reported on 21 March 2016, tested at a commercial aggregate stable dry oil flow rate of 1,688 barrels of oil per day from the Kimmeridge Limestones and Portland section. Importantly, the PEDL234 licence includes regulatory permission to drill the Kimmeridge at the Broadford Bridge-1 site. Furthermore, PEDL234 contains a further mapped gas appraisal opportunity, in the eastern extension of the Godley Bridge Portland gas discovery.

Stephen Sanderson, UKOG's Executive Chairman, commented:

"This is an important step for the Company, making UKOG the leading player and acreage holder in Kimmeridge oil and a significant player in the UK onshore oil industry. It fits perfectly into our overall 2-year strategy to de-risk and push the Kimmeridge play to the point of commercial development. We are on a very exciting journey."

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 / Jason Berry Tel: [phone]

WH Ireland (Nominated Adviser and Broker)

James Joyce / James Bavister Tel: [phone]

Square 1 Consulting (Public Relations)

David Bick / Brian Alexander Tel: [phone]

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 
----------  --------------------------------------------------------- 
 flow test   a flow test or well test involves testing a well 
              by flowing hydrocarbons to the surface, typically 
              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 hydrocarbons 
              at a commercial flow rate 
----------  --------------------------------------------------------- 
 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. The Kimmeridge Limestones are effectively 
              chalks being comprised of the remains of calcareous 
              planktonic algae. 
----------  --------------------------------------------------------- 
 

The Company has interests in the following UK licences:

 
Asset                Licence     UKOG's     Licence Holder       Operator         Area            Status 
                                 Interest                                         (km(2) 
                                                                                    ) 
                    ---------  ----------  ---------------  ------------------  --------  ---------------------- 
Avington                                      UKOG (GB)         IGas Energy                   Field in stable 
 (1)                 PEDL070       5%           Limited             Plc           18.3          production. 
------------------  ---------  ----------  ---------------  ------------------  --------  ---------------------- 
                                                                                            Reviewing economics 
                                                                                               of appraisal/ 
Baxters                                       UKOG Weald        IGas Energy                     development 
 Copse (2)           PEDL233       50%          Limited             Plc           89.6             well. 
------------------  ---------  ----------  ---------------  ------------------  --------  ---------------------- 
                                              Kimmeridge        Kimmeridge                 BB-1 well permitted; 
Broadford                                      Oil & Gas         Oil & Gas                     expected 2017 
 Bridge              PEDL234     100%(7)        Limited           Limited         300.0          spud date. 
------------------  ---------  ----------  ---------------  ------------------  --------  ---------------------- 
                                                                                                Drilling of 
Brockham                                     Angus Energy      Angus Energy                    sidetrack well 
 (1)                  PL234       3.6%            (5)               (5)            8.9       being considered. 
------------------  ---------  ----------  ---------------  ------------------  --------  ---------------------- 
                                                                Europa Oil                    H-1 exploration 
Holmwood                                                      & Gas (Holdings)                   commitment 
 (3)                 PEDL143       30%           UKOG               plc           91.8         well planned. 
------------------  ---------  ----------  ---------------  ------------------  --------  ---------------------- 
Horndean                                      UKOG (GB)         IGas Energy                   Field in stable 
 (1)                  PL211        10%          Limited             Plc           27.3          production. 
------------------  ---------  ----------  ---------------  ------------------  --------  ---------------------- 
                                              Horse Hill        Horse Hill                     Extended flow 
Horse Hill                                   Developments       Developments                     testing of 
 (4)                 PEDL137      31.2%         Ltd (6)           Ltd (6)         99.3             HH-1. 
                                                                                --------  ---------------------- 
                                              Horse Hill        Horse Hill                     Extended flow 
Horse Hill                                   Developments       Developments                     testing of 
 (4)                 PEDL246      31.2%         Ltd (6)           Ltd (6)         43.6             HH-1. 
------------------  ---------  ----------  ---------------  ------------------  --------  ---------------------- 
Isle of 
 Wight (Offshore)                            UKOG Solent        UKOG Solent                 Preparing drilling 
 (3)                  P1916      100%(7)        Limited           Limited         46.7      planning submission. 
------------------ 
Isle of 
 Wight (Onshore)                                                                            Preparing drilling 
 (2, 3)              PEDL331       65%           UKOG               TBA           200.0     planning submission. 
------------------  ---------  ----------  ---------------  ------------------  --------  ---------------------- 
                                                                                                Drilling of 
                                             Angus Energy      Angus Energy                     infill well 

Lidsey (1)            PL241       4.2%            (5)               (5)            5.3       being considered. 
------------------  ---------  ----------  ---------------  ------------------  --------  ---------------------- 
                                                                                              Compiling Field 
Markwells                                     UKOG (GB)          UKOG (GB)                      Development 
 Wood (2)            PEDL126      100%          Limited           Limited         11.2             Plan. 
------------------  ---------  ----------  ---------------  ------------------  --------  ---------------------- 
 

Notes:

1. Oil field currently in production.

2. Oil discovery pending development and/or appraisal drilling.

3. Exploration asset with drillable prospects and leads.

4. Oil discovery with recently completed flow testing.

5. UKOG has a 6% interest in Angus Energy, which has a 70% interest in Lidsey and a 60% interest in Brockham.

6. UKOG has a 48% interest in HHDL; HHDL has a 65% interest in PEDL137 and PEDL246.

7. On completion of the acquisitions mentioned above in respect of PEDL234 and P1916.

This information is provided by RNS

The company news service from the London Stock Exchange

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August 05, 2016 11:03 ET (15:03 GMT)