20th Feb 2015 08:33
LONDON (Alliance News) - UK Oil and Gas Investments PLC Friday said it has signed an agreement which will lead to the company owning 100% of the onshore PEDL126 license in the Weald Basin in the UK for a nominal sum.
UK Oil signed the agreement with its partner, Magellan Petroleum (UK) Ltd, to acquire its 40% stake in the license, which is also known as Markwells Wood, for GBP1.
"UK Oil and Gas' increased ownership will enable us to more fully exploit identified subsurface and infrastructure synergies shared with the adjacent producing Horndean oil field in which the company holds a 10% interest," said Chief Executive Stephen Sanderson.
Following the transaction, UK Oil will own 100% of Markwells Wood, which produced a peak flow period of 100 barrels of oil equivalent a day when tested between 2011 and 2012, and it produced a total of 3,931 barrels of oil over a six month well test period.
"UKOG and Magellan continue to work together to unlock value from our other joint venture licences in the Weald and Wessex Basins," said UK Oil.
UK Oil shares were up 10% to 0.590 pence per share on Friday morning.
By Joshua Warner; [email protected]; @JoshAlliance
Copyright 2015 Alliance News Limited. All Rights Reserved.
Related Shares:
UK Oil & Gas