12th Jun 2026 13:00
(Alliance News) - UK Oil & Gas PLC on Friday said it has agreed to sell its entire 85.64% interest in the Horse Hill oil field and surrounding PEDL137 licence in Surrey to energy B PLC for GBP1.0 million in cash.
The London-listed company said the disposal marks its planned exit from the UK onshore oil and gas sector and will allow it to focus on its salt cavern energy storage projects and potential international energy opportunities.
Shares in UK Oil & Gas fell 2.6% to 0.0095 pence in London on Friday afternoon. Shares in energy B were quoted at 12.50 pence in the Aquis Stock Exchange on Friday, more than doubling from 5.50 pence the day before.
Completion of the sale is conditional on regulatory approval from the UK petroleum regulator and shareholder approval from energy B, which is expected to hold a general meeting in July.
Under the deal, energy B will acquire UKOG's wholly owned subsidiary UKOG (137/246) Ltd, which holds a 35% working interest in Horse Hill and PEDL137, as well as UKOG's 77.9% stake in Horse Hill Developments Ltd. Combined, the assets represent an 85.64% interest in the field and licence.
UKOG Chief Executive Stephen Sanderson said the transaction was a "timely and attractive opportunity" to complete the company's exit from UK onshore oil and gas.
As of September 30, 2025, UKOG carried its Horse Hill interests at a value of GBP55,360 following cumulative impairment charges of GBP3.2 million. The assets reported a loss of GBP1.6 million in financial 2025, reflecting operational losses linked to the field's production suspension and costs associated with shareholder and intercompany loans.
Separately, energy B said it has raised GBP1.2 million through a placing and subscription to help fund the acquisition and working capital requirements.
energy B also announced the appointment of David Lenigas as executive chair with immediate effect, while Neil Ritson will become chief executive officer.
The company said Horse Hill would form part of a broader strategy to build a portfolio of UK oil and gas assets supporting domestic energy security, alongside its existing wind turbine technology interests.
Horse Hill, near Gatwick Airport, has produced around 211,651 barrels of oil to date. During testing in 2016, the discovery well recorded peak aggregate flow rates of 1,688 barrels of oil per day, which energy B described as a record for a new onshore UK oil discovery well.
By Eva Castanedo, Alliance News reporter
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