UK Oil & Gas PLC Completion of Acquisition in Horse Hill (8910L)
11 Septiembre 2019 - 1:00AM
UK Regulatory
TIDMUKOG
RNS Number : 8910L
UK Oil & Gas PLC
11 September 2019
UK Oil & Gas PLC
("UKOG" or the "Company")
Acquisition of Tellurian's 35% interest in Horse Hill oil field
completed
UK Oil & Gas PLC (London AIM: UKOG) is pleased to announce
that it has completed the acquisition of Magellan Petroleum (UK)
Investment Holdings Limited ("Magellan") from Tellurian Investments
LLC, for a total consideration of GBP12 million in cash and UKOG
shares. The addition of Magellan's 35% direct interest in the Horse
Hill oil field, held through the PEDL137 and PEDL246 licences,
significantly increases the Company's holding in its flagship
asset, from 50.635% to a controlling 85.635%, a 69% increase in
UKOG's associated Horse Hill net asset value and net
reserves/resources.
Following the acquisition, ongoing civil works at Horse Hill,
necessary to enable simultaneous Horse Hill-2/2z ("HH-2/2z")
drilling and HH-1 Kimmeridge test production, are expected to be
completed this week, with drilling expected to start before the end
of September. Further HH-2/2z operational updates will be made in
due course.
Transaction Summary
The GBP12 million consideration is payable in three
tranches:
-- An GBP8 million initial consideration on SPA completion
-- A GBP3 million deferred payment, on or before 31 December 2019, in UKOG shares or cash.
-- A GBP1 million second deferred payment, on or before 31 March 2020, in UKOG shares or cash.
The GBP8 million initial consideration was satisfied through the
payment of GBP5 million in cash and the issue of an aggregate total
of 275,988,960 new ordinary shares in UKOG ("Consideration
Shares"). The number of consideration shares issued was calculated
by the payment amount divided by the 10-day average mid-price of
UKOG ordinary shares prior to the completion date.
An application has been made for the Consideration Shares to be
admitted to trading on AIM, which are anticipated to be available
for trading on or around 12(th) September 2019 ("Admission").
Following Admission, the Company's enlarged issued share capital
will comprise 6,359,278,867 ordinary shares. The Company holds no
shares in treasury. The enlarged ordinary share capital figure may
be used by shareholders in the Company as the denominator for the
calculations by which they will determine if they are required to
notify their interest in, or a change in their interest in, the
share capital of the Company under the FCA's Disclosure and
Transparency Rules.
Further to our announcement of 7(th) August, whilst the
completion of this transaction does not require formal Oil and Gas
Authority ('OGA') approval, the Company has sought a comfort letter
from the OGA to the effect that it has no objection to the change
of control of Magellan as a licensee; we await their formal
response.
Stephen Sanderson, UKOG's Chief Executive, commented:
"The completion of this transformational acquisition of a
further 35% in our flagship asset means UKOG is now firmly in the
driving seat at Horse Hill, holding a controlling 85.635% interest.
Our operations team is now poised to commence simultaneous Horse
Hill-2/2z Portland drilling and HH-1 Kimmeridge test operations
before month's end. The remainder of the year at Horse Hill looks
set to be highly eventful and, hopefully, financially
transformative, as we drive to seek establishing permanent oil
production by year end."
For further information, please contact:
UK Oil & Gas PLC
Stephen Sanderson / Kiran Morzaria Tel: 01483 900582
WH Ireland Ltd (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 Tel: 01483 900582
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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