13th Aug 2014 09:03
LONDON (Alliance News) - UK Oil & Gas Investments PLC Wednesday said it has a binding heads of agreement to buy a further 12.5% equity stake in Horse Hill Development Ltd, the company that has rights to a 65% participating interest and operatorship in the UK onshore Horse Hill Field in the Weald Basin near Gatwick Airport.
Under the agreement, UK Oil & Gas will pay GBP750,000 in cash for the new stake, which will mean its direct interest in Horse Hill Development Ltd will rise to 20%, from 7.5%.
It also has an additional interest in the field because it has a 6% stake in Angus Energy Ltd, which in turn owns 40% of Horse Hill Development Ltd.
"This further investment in Horse Hill now makes UKOG the second largest shareholder in the Horse Hill Development consortium, behind Angus Energy. We are pleased to have secured this increased exposure to this exciting conventional oil and gas play in the Weald Basin just prior to spudding of the Horse Hill-1 well," UK Oil & Gas Chairman David Lenigas said in a statement.
The company's shares were up 5.1% at 1.12 pence Wednesday morning.
By Steve McGrath; [email protected]; @stevemcgrath1
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