UK Oil & Gas Investments (UKOG) is to increase its shareholding in the Horse Hill development in the south of England.
The AIM listed firm is to take a 1.9% interest from Regency Mines, increasing its interest to 32.435% in the onshore Weald basin.
The deal will cost UKOG £323,000.
A total of £54,498 will be payable in cash with the remaining £268,502 in the form of the issue of new ordinary shares in UKOG.
The licences, covering an area of 55 square miles north of Gatwick Airport, contain the Horse Hill-1 (“HH-1”) Portland sandstone and Kimmeridge Limestone oil discoveries.
The first flow test at HH1 showed significant commercial aggregate stable dry oil rate of 1,688 barrels of oil per day.
Stephen Sanderson, UKOG’s Executive Chairman, said: “This acquisition fits perfectly within UKOG’s stated strategy to further consolidate and increase its holdings in the Kimmeridge oil play in the Weald.
“The licences remain a significant part of UKOG’s extensive Kimmeridge portfolio, containing both the HH-1 oil discovery and its likely continuation across much of the licenced area.
“In addition to HH-1 Kimmeridge oil, the Portland oil discovery remains a significant potential early monetisation asset, which, given the 323 bopd test rate, we believe has a high chance of commercial viability.
“Given a successful production test outcome, both the Kimmeridge and Portland remain on course for stable oil production by end 2018/early 2019.”
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