# Solo Oil Plc Sells Horse Hill Developments 15% interest and buys UKOG shares

- Link: https://www.directorstalkinterviews.com/solo-oil-plc-sells-horse-hill-developments-15-interest-and-buys-ukog-shares/412757419
- Published: 2018-08-30T07:08:00+01:00
- Author: Giles Arbor

**Solo Oil Plc** (LON:SOLO), the natural resources investment company focused on
acquiring and developing a diverse global non-operated portfolio of strategic oil
and gas assets, today announced that the Company has agreed to enter into a conditional
sale and purchase agreement to dispose of its entire 15% interest in Horse Hill 
Developments Limited to **UK Oil and Gas plc** (LON:UKOG) for a total cash consideration
of £4.5 million together with a simultaneous purchase of 234,042,221 new ordinary
share in UKOG equivalent to a 4.2% interest in UKOG.

**Transaction Summary**

For a total consideration of £4.5 million UKOG has agreed to acquire Solo’s 15% 
shareholding and loan in HHDL. With an effective date of 28 August 2018, the total
consideration will be satisfied through the issue of 234,042,221 new ordinary shares
in UKOG. The Consideration Shares are calculated based on the 10-day volume weighted
average price to 24 August 2018 of 1.92 pence.

Based on the £4.5 million consideration Solo has made an investment return of 50%
on the additional 5% it acquired in February 2018, and 45% on its total investment
in HHDL since February 2014.

Following completion of the transaction, Solo will hold 4.2% of the issued share
capital of UKOG. On completion UKOG will hold a 71.9% interest in HHDL which in 
turn holds a 65% interest in two onshore UK petroleum exploration licences, PEDL
137 and PEDL 246, which contain the Horse Hill oil discovery.

Completion of the disposal, which will be announced in due course, is conditional
on HHDL consent. In the year ended December 2016, HHDL made a loss of £146,208.

> **Non-executive Chairman, Alastair Ferguson, commented:** “This transaction is
> in line with our investment strategy and provides evidence of our now proven ability
> to monetise assets within our portfolio and generate value for shareholders. The
> transaction enables Solo to retain significant exposure to the Horse Hill project
> as it undergoes the pivotal testing activities, the results of which have been
> very positive to date.”
> **Solo Oil Plc Managing Director, Dan Maling, added:** “The Board has seized the
> opportunity to monetise its investment in HHDL and is pleased with the return 
> we have made on our investment. The transaction enables a more liquid balance 
> sheet and frees Solo from future direct operational expenditure at Horse Hill,
> but ensures we retain the exposure to the exciting upside potential of the projects
> within UKOG’s diverse portfolio. Importantly, we will retain the option to monetise
> our shares in UKOG at the appropriate time.”

**Further AIM Disclosures**

1. The Consideration Shares will be held available for sale. As at 30 June 2018,
the carrying value of the 15% interest in HHDL was £3.1 million. The market value
of the Consideration Shares was £5.4 million based on the closing price of UKOG 
shares on 28 August 2018 of 2.3p.

2. UK Oil and Gas plc (“UKOG”)

UKOG is an operating company with shares listed and traded on AIM. The current portfolio
includes eight oil and gas assets under Petroleum and Exploration Licences, all 
of them onshore:

(a) Avington – UKOG holds a 5% interest

(b) Broadford Bridge – operated by UKOG’s 100% owned Kimmeridge Oil & Gas Limited.

(c) Holmwood – UKOG has a 40% interest

(d) Horndean – UKOG has a 10% interest

(e) Horse Hill – UKOG currently holds a 32.435%in the Horse Hill licences and a 
49.9% interest, in Horse Hill Developments Ltd. In addition It has currently entered
into conditional SPA’s which would, if completed take UKOG’s holding to 46.735% 
in the Horse Hill licences and a 71.9% in Horse Hill Developments Ltd.

(f) Isle of Wight – UKOG has a 65% interest

(g) Markwells Wood – UKOG owns 100% of Markwells Wood.

Interim results for the six months ended 31 March 2018 show total assets of £32,390,000.

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