29th Oct 2014 08:31
LONDON (Alliance News) - Solo Oil PLC and UK Oil and Gas Investments PLC Wednesday said they have partnered up and submitted an application for a license in the UK's 14th Landward License Round.
UK Oil shares were down 5.2% to 0.971 pence per share Wednesday morning, whilst Solo Oil shares were down 1.4% to 0.818 pence per share.
Solo Oil and UK Oil and Gas, together with Angus Energy Ltd, have formed a partnership to apply for a 200 kilometre squared area in the southern area in the Isle of Wight.
UK Oil and Gas has a 6% stake in Angus Energy, a qualified UK onshore exploration and production operator which will operate the license should it be awarded to the partnership.
UK Oil and Gas holds a 65% interest in the application for the license, whilst Solo Oil holds a 30% interest, with Angus holding the remaining 5% stake.
"The 14th Round presented a number of conventional oil prospects and we are pleased to extend our collaboration with Angus and UK Oil and Gas into this area," said Solo Chairman Neil Ritson.
"UK Oil and Gas is excited about the oil and gas exploration potential of the Isle of Wight, both onshore and offshore," said UK Oil and Gas' Chairman David Lenigas.
UK Oil and Gas also announced that it has obtained an unsecured USD10 million debt facility from YA Global Master SPV Ltd to fund further investment in the UK oil and gas sector. The company has immediately drawn down its first USD1 million.
The debt facility carries a 10% annual interest rate and each draw down UK Oil and Gas makes will be paid back in twelve equal instalments, either by cash or by converting the repayment amount into shares, it said in a statement.
By Joshua Warner; [email protected]; @JoshAlliance
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