REG - UK Oil & Gas Inv PLC - Acquisition of Further Interest in Horse Hill-1 <Origin Href="QuoteRef">UKOGa.L</Origin>

UK Oil & GasAnnouncement

24/08/2017 07:05

RNS Number : 8297O
UK Oil & Gas Investments PLC
24 August 2017
UK Oil & Gas Investments PLC
("UKOG" or the "Company")
Completion of acquisition of further Interest in Horse Hill-1 Oil Discovery and Licenses, Weald Basin, UK
UK Oil & Gas Investments PLC (London AIM and ISDX: UKOG) announces that it has completed the acquisition of a 1.9% shareholding in Horse Hill Developments Ltd ("HHDL") from Regency Mines plc ("Regency"), previously announced on the 10 July 2017. The Company now holds 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 km2) 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 from the uppermost two Kimmeridge Limestone intervals and the overlying Portland reservoir. Regulatory permissions are being sought for a signicant long-term production testing and appraisal programme of the productive Kimmeridge Limestone and Portland reservoirs.
Transaction Summary
For a total consideration of 323,000, 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 2017, is comprised of 54,498 payable in cash and 268,502 in the form of the issue of new ordinary shares in UKOG ("Consideration Shares"). The calculation of the Consideration Shares is based on using a share price equivalent to the 30-day volume weighted average price of UKOG share prior to 29 June 2017. 
As such application has been made for 17,361,862 new ordinary shares to be admitted to trading on AIM and it is anticipated that trading in such shares will commence on or around 30 August 2017.
Following Admission, the Company's enlarged issued share capital will comprise 3,538,120,962 ordinary shares. The Company does not hold any shares in treasury. This figure of 3,538,120,962 ordinary shares may be used by shareholders in the Company as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change in their interest in, the share capital of the Company under the FCA's Disclosure and Transparency Rules.
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% benecial 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.
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
BPA Media/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 test or extended flow test
a long test period usually up to 6 months where hydrocarbons are flowed 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 Interest
Licence Holder
Operator
Area (km2)
Status
Avington1
PEDL070
5%
UKOG (GB) Limited
IGas Energy Plc
18.3
Field in stable production
Baxters Copse2
PEDL233
50%
UKOG Weald Limited
IGas Energy Plc
89.6
Appraisal/development well planned; licence extended to 2018
Broadford Bridge 3
PEDL234
100%
Kimmeridge Oil & Gas Limited 4
Kimmeridge Oil & Gas Limited 4
300.0
BB-1 & 1z drilling completed, well completion prior to extended testing underway
Holmwood3
PEDL143
30%
UKOG
Europa Oil & Gas (Holdings) plc
91.8
Holmwood-1 exploration well planned in 2017
Horndean1
PL211
10%
UKOG (GB) Limited
IGas Energy Plc
27.3
Field in stable production
Horse Hill5
PEDL137
32.435%
Horse Hill Developments Ltd
Horse Hill Developments Ltd
99.3
Submitted planning application for long term production tests and drilling of two wells
Horse Hill5
PEDL246
32.435%
Horse Hill Developments Ltd
Horse Hill Developments Ltd
43.6
As above
Isle of Wight (Offshore)3
P1916
100%
UKOG Solent Limited
UKOG Solent Limited
46.7
Preparing drilling planning submission
Isle of Wight (Onshore)2, 3
PEDL331
65%
UKOG
TBA
200.0
Preparing drilling planning submission
Markwells Wood2
PEDL126
100%
UKOG (GB) Limited
UKOG (GB) Limited
11.2
Submitted planning 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
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