TIDMUKOG
RNS Number : 2658W
UK Oil & Gas PLC
16 April 2019
UK Oil & Gas PLC
("UKOG" or the "Company")
Acquisition of Further Interest in PEDL143 Exploration
Licence
UK Oil & Gas PLC (London AIM: UKOG) is pleased to announce
that it has entered into a binding heads of terms with both Europa
Oil and Gas Limited ("Europa") and Union Jack Oil plc ("Union
Jack") to acquire their respective 20% and 7.5% interests in the
highly prospective PEDL143 exploration licence ("Licence"). Upon
completion, the Company will hold a majority operated 67.5%
interest in the Licence.
The Licence contains the significant "A24" Portland and
Kimmeridge oil prospect that is a direct geological look-alike to
the Company's Horse Hill oil field, situated on-trend some 8 km to
the east. Several smaller prospects of similar size to the nearby
Brockham Portland oil field have also been identified. Work is well
advanced to find a suitable drilling location that is situated
outside of the Surrey Hills Area of Outstanding Natural Beauty
("AONB").
As previously reported in UKOG's latest Annual Report, it is the
Company's strategy to hold majority interests in key operated
assets, particularly those that offer significant recoverable
resource potential in the same Portland and Kimmeridge reservoir
targets as the Company's Horse Hill oil field.
Transaction Summary
The total considerations of GBP300,000 and GBP112,500 to Europa
and Union Jack, respectively, with an effective date of 15 April
2019, will be satisfied through the issue of an aggregate total of
35,683,391 new ordinary shares in UKOG ("Consideration Shares"),
with 25,951,557 and 9,731,834 Consideration Shares issued to Europa
and Union Jack respectively. The Consideration Shares are
calculated based upon the 5-day volume weighted average price to
market close on Friday 12 February 2019 of 1.156 pence.
Completion of this acquisition, which is subject to the usual
Oil and Gas Authority consent, will be announced in due course.
Stephen Sanderson, UKOG's Chief Executive, commented:
"We are delighted to acquire this further significant share of
such a highly prospective exploration Licence, which contains, in
UKOG's view, one of the best undrilled Portland and Kimmeridge
prospects in the Weald Basin. The proximity to UKOG's Horse Hill
field, together with the Company's operational and subsurface
expertise in the area, adds potentially significant operational and
cost synergies to the project's overall benefit. UKOG, as the new
Licence operator, will now push ahead to finalise a new well
location outside of the Surrey Hills AONB.
This acquisition is in full accordance with our stated strategy
of holding majority operated interests in key assets."
Qualified Person's Statement
Rob Wallace, UKOG's principal technical advisor, who has over 40
years of relevant experience in the oil industry, has approved the
information contained in this announcement. Mr Wallace is a
Chartered Scientist, Chartered Geologist and Fellow of the
Geological Society of London, an active member of the American
Association of Petroleum Geologists, a member of the Petroleum
Exploration Society of Great Britain and a member of the South
African Geophysical Society.
For further information, please contact:
UKOG
Stephen Sanderson / Kiran Morzaria Tel: 01483 900582
WH Ireland (Nominated Adviser and Broker)
James Joyce / James Sinclair-Ford Tel: 020 7220 1666
Cenkos Securities PLC (Joint Broker)
Joe Nally / Neil McDonald Tel: 0207 397 8919
Novum Securities (Joint Broker)
John Bellis
Tel: 020 7399 9400
Public Relations
Brian Alexander / David Bick Tel: 01483 900582
Glossary
oil field an accumulation, pool or group of pools of oil
in the subsurface that produces oil to surface.
An oil field consists of a reservoir in a shape
that will trap hydrocarbons and that is covered
by an impermeable or sealing rock
prospect a project associated with a potential accumulation
that is sufficiently well defined to represent
a viable drilling target
---------------------------------------------------
UKOG Licence Interests
The Company has interests in the following UK licences:
Asset Licence UKOG's Licence Operator Area Status
Interest Holder (km(2)
)
Field currently
Avington UKOG (GB) IGas Energy temporarily shut
(1) PEDL070 5% Limited Plc 18.3 in
----------------- ---------- -------------- -------------- -------- ----------------------
Broadford BB-1 & 1z oil
Bridge UKOG (234) UKOG (234) discovery, planning
(3) PEDL234 100% Ltd (4) Ltd (4) 300.0 application approved
----------------- ---------- -------------- -------------- -------- ----------------------
Seeking alternate
sites to drill
A24 and other
Portland/Kimmeridge
A24 (3) PEDL143 67.5% UKOG UKOG 91.8 prospects
----------------- ---------- -------------- -------------- -------- ----------------------
Horndean UKOG (GB) IGas Energy Field in stable
(1) PL211 10% Limited Plc 27.3 production
----------------- ---------- -------------- -------------- -------- ----------------------
Production tests
ongoing, two further
Horse Hill Horse Hill appraisal wells
Horse Hill Developments Developments scheduled for
(5) PEDL137 50.635% Ltd Ltd 99.3 2019
----------------- ---------- -------------- -------------- -------- ----------------------
Horse Hill Horse Hill
Horse Hill Developments Developments
(5) PEDL246 50.635% Ltd Ltd 43.6 As above
----------------- ---------- -------------- -------------- -------- ----------------------
Preparing planning
submission for
Arreton-3 oil
Isle of appraisal well
Wight (Onshore) and Arreton South
(2, 3) PEDL331 95% UKOG UKOG 200.0 exploration well
----------------- ---------- -------------- -------------- -------- ----------------------
Markwells UKOG (GB) UKOG (GB) Well plugged
Wood PEDL126 100% Limited Limited 11.2 and abandoned
----------------- ---------- -------------- -------------- -------- ----------------------
Notes:
1. Oil field currently in stable production.
2. Oil discovery pending development and/or appraisal
drilling.
3. Exploration asset with drillable prospects and leads.
4. Contains the Broadford Bridge-1 /1z Kimmeridge oil discovery,
the eastern extension of the Godley Bridge Portland gas discovery
plus further undrilled Kimmeridge exploration prospects.
5. Oil field with three productive and commercially viable
zones, EWT ongoing, two further wells HH-1z and HH-2 scheduled in
Q2 2019, development underway subject to grant of planning consent,
expected in Q3 2019.
6. UKOG has a direct 77.9% interest in HHDL, which has a 65%
interest in PEDL137 and PEDL246.
The information contained within this announcement is deemed by
the Company to constitute inside information under the Market Abuse
Regulation (EU) No. 596/2014.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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