18th Apr 2016 08:28
LONDON (Alliance News) - UK Oil & Gas Investments PLC on Monday said it has acquired the remaining stake held by Angus Energy Holdings UK Ltd in the licences which cover the Horse Hill oil discovery in the UK.
UK Oil & Gas said it will acquire Angus's 12% stake in Horse Hill Developments Ltd, the company which owns 65% of the PEDL137 and PEDL246 onshore Weald Basin licences. The move will increase UK Oil & Gas's stake in Horse Hill Developments to 42%, giving it a 27.3% working interest in the licences.
A number of UK-listed firms also hold stakes in Horse Hill Developments, including Alba Mineral Resources PLC, Stellar Resources PLC, Solo Oil PLC, Regency Mines PLC and Evocutis PLC.
UK Oil & Gas will pay GBP1.0 million in cash and GBP800,000 in shares to cover the consideration for Angus's stake.
"Following the recent highly significant HH-1 flow test results this acquisition is an important and entirely logical step for the company. It provides us with a far more material interest in the exciting HH-1 Portland and Kimmeridge limestone oil discovery, and importantly, is part of our ongoing strategy to consolidate and expand our licence position in the new and potentially significant Kimmeridge Limestone oil province," said Stephen Sanderson, UK Oil & Gas's executive chairman.
Separately Monday, UK Oil & Gas Investments published a report, authored by accountant EY, on the economic impact of the Weald Basin projects.
The report, the company said, highlights the significant positive contribution to the UK economy, jobs and energy security that could result from this new potential oil production.
This includes lifetime revenue from the project of GBP2.1 billion to GBP18.1 billion and a gross added value to the UK economy of GBP7.1 billion to GBP52.6 billion.
UK Oil & Gas shares were down 1.4% to 2.17 pence.
By Sam Unsted; [email protected]; @SamUAtAlliance
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