12th Dec 2018 11:13
LONDON (Alliance News) - UK Oil & Gas PLC has agreed to buy Solo Oil PLC's 30% stake in the PEDL331 licence on the Isle of Wight, the companies said Wednesday.
UKOG will be paying Solo GBP350,000 for the interest, satisfied via 18.0 million new UKOG shares and GBP90,450 in cash.
UKOG shares were 1.0% higher Wednesday at 1.41 pence each, while Solo shares were 0.5% higher at 1.51p. The UKOG share price makes 18.0 million UKOG shares worth about GBP254,000.
Following the deal, UKOG will hold 95% of the licence. It contains the Arreton oil discovery, which it said is analogous to its existing Horse Hill discovery in Surrey.
UKOG Chief Executive Stephen Sanderson said: "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," he added.
"We look forward to starting the journey towards realising the Isle of Wight licence's considerable conventional oil resource potential."
Solo Oil's Managing Director Dan Maling said the sale was part of its stated strategy of disposing of non-core assets.
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