UK Oil & Gas Investments Plc (LON:UKOG) CEO Stephen Sanderson caught up with DirectorsTalk to discuss the the rationale behind the acquisition of Angus Energy’s stake in Horse Hill and how Stephen sees the acquisition in terms of value and impact to the company.
The Company has significantly increased its net working interest in the Licences from 19.968% to 27.3%. The Licences, covering an area of 55 square miles, contain the new Horse Hill-1 (“HH-1”) Portland sandstone and Kimmeridge Limestone oil discoveries north of Gatwick Airport and which, as previously reported on 21 March, flow tested at a significant “North Sea-like” commercial aggregate stable dry oil rate of 1688 barrels of oil per day.
For a total Consideration of £1.8 million, the Company will receive Angus’ 7.8% beneficial interest in the Licences via the purchase of Angus’ remaining 12% shareholding in Horse Hill Developments Limited (“HHDL”). The Consideration, with an effective date of 15 April 2016, is comprised of £1 million in cash and £0.8 million in the form of 43,886,116 UKOG ordinary shares. Furthermore, £200,000 of the cash element will be paid directly by Angus to the Licence Operator, HHDL, to reconcile cash calls for the now completed HH-1 flow test operations. The transaction requires no further regulatory approvals.
UK Oil & Gas Investments Plc is a dynamic and innovative British oil and gas company, striving to support the drive for increased energy security for this country, while preserving the natural beauty of the Weald region. The company is listed and trade on London’s Alternative Investment Market (AIM) and ISDX Growth Market and have a portfolio of direct and indirect investments in 11 UK onshore exploration, appraisal, development and production assets. These assets cover 650 sq km in the Weald and Purbeck-Wight basins of Southern England. We are generating investment cash from our interests in four producing oil fields in the region: Horndean, Avington, Brockham and Lidsey. UKOG is keen to grow its core business in the Weald by developing the Markwells Wood oil discovery, appraising the Horse Hill Portland and Baxter’s Copse oil discoveries, and also via new exploration and acquisitions in the Weald and Isle of Wight.