15th Jan 2014 10:43
LONDON (Alliance News) - UK Oil & Gas Investments PLC Wednesday said it plans to buy Angus Energy Eakring Development Limited and Angus Energy Kirklington Development Limited for GBP290,000 as it seeks to expand its interest in UK oil fields.
Earking and Kirlington own 10% interests in onshore UK Petroleum Exploration and Development Licences (PEDL) 118 and PEDL 203 located in Nottinghamshire in the East Midlands Petroleum Province.
The operators of these PEDL's is Egdon Resources PLC.
UK Oil & Gas said it has the right to increase its ownership of PEDL 118 to 20% by paying 30% of the cost of the next well to be drilled on the licence.
As part of the deal, the firm will pay GBP140,000 in cash and the issue of 18.8 million shares to a market value for GBP150,000, equivalent to a price of 0.8 pence per share, and will be escrowed for a period of three months once issues.
"[We] are looking forward to working on these exciting oil fields with Egdon, the operators of the Eakring-Dukes Wood and Kirklington oil fields, who are evaluating a short-term restart of production and a long-term growth plan for the fields," Chairman David Lenigas said in a statement.
"[The deal] provides the company exposure to two further conventional oil plays where we see significant upside potential going forward at a time of growing investment interest in the UK's onshore hydrocarbon sector by International Oil and Gas companies," he added.
The transaction is expected to close in full within 30 days.
The stock was trading at 1.02 pence Wednesday morning, up 0.18 pence or 24%, one of the big gainers on the London market.
By Anthony Tshibangu; [email protected]; @AnthonyAllNews
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