Completion of Arreton Oil Discovery Acquisition

RNS Number : 7508N

UK Oil & Gas PLC

22 January 2019

 

UK Oil & Gas PLC

("UKOG" or the "Company")

Completion of PEDL331 Arreton Oil Discovery Acquisition

UK Oil & Gas PLC (London AIM: UKOG) is pleased to announce that the previously disclosed (12 December 2018) transaction with Solo Oil Plc ("Solo") to acquire their 30% interest in the PEDL331 onshore Isle of Wight licence ("the Licence") has been completed following approval from the Oil and Gas Authority. UKOG now holds an operated 95% direct interest in the Licence which contains the Arreton oil discovery and the Arreton South exploration prospect, both of which are planned to be drilled and long term tested next year.

Transaction Summary

UKOG has acquired Solo's 30% interest in the Licence for a total consideration of £350,000. The total consideration has been satisfied through the issuance of 17,989,326 new ordinary shares in UKOG ("Consideration Shares") and £90,450 in cash. The Consideration Shares were calculated based on the 5-day volume weighted average price to 10 December 2018 of 1.4428 pence. 

As such an application has been made for 17,989,326 new ordinary shares to be admitted to trading on AIM and it is anticipated that trading in such shares will commence on or around 28 January 2019.

Following Admission, the Company's enlarged issued share capital will comprise 5,584,643,556 ordinary shares. The Company does not hold any shares in treasury. This figure of 5,584,643,556 ordinary shares 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.

For further information, please contact:

UKOG

Stephen Sanderson / Kiran Morzaria                                                                      Tel: [phone]

WH Ireland (Nominated Adviser and Broker)

James Joyce / James Sinclair-Ford                                                                           Tel: [phone]

Cenkos Securities PLC (Joint Broker)

Joe Nally / Neil McDonald                                                                                        Tel: [phone]

Novum Securities (Joint Broker)                                                                                                               

John Bellis                                                                                                                    Tel: [phone]

Public Relations

Brian Alexander / David Bick                                                                                    Tel: [phone]

UKOG Licence Interests

The Company has interests in the following UK onshore licences situated in the south of England:

Asset	Licence	UKOG's Interest	Licence Holder	Operator	Area (km2)	Status
Avington	PEDL070	5%	UKOG (GB) Limited	IGas Energy Plc	18.3	Field currently temporarily shut in
Broadford Bridge 2, 3	PEDL234	100%	UKOG (234) Ltd 4	UKOG (234) Ltd 4	300.0	BB-1 & 1z oil discovery, planning application approved
Holmwood 3	PEDL143	40%	UKOG	Europa Oil & Gas (Holdings) plc	91.8	Seeking alternate sites to drill Holmwood and other Kimmeridge prospects
Horndean 1	PL211	10%	UKOG (GB) Limited	IGas Energy Plc	27.3	Field in stable production
Horse Hill 5	PEDL137	46.735%	Horse Hill Developments Ltd ⁶	Horse Hill Developments Ltd ⁶	99.3	Production tests ongoing, two further appraisal wells scheduled for 2019
Horse Hill 5	PEDL246	46.735%	Horse Hill Developments Ltd⁶	Horse Hill Developments Ltd ⁶	43.6	As above
Isle of Wight 2, 3	PEDL331	95%	UKOG	UKOG	200.0	Preparing planning submission for Arreton-3 oil appraisal well and Arreton South exploration well
Markwells Wood	PEDL126	100%	UKOG (GB) Limited	UKOG (GB) Limited	11.2

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 71.9% 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

 

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