Business
Acquisition of 100% interest in Licence
Acquisition of 100% interest in Licence.
About this update from Uk Oil & Gas Plc
[{"type":"text","content":"\n \nRNS Number : 9264A UK Oil & Gas Investments PLC 13 June 2016 \n\nUK Oil & Gas Investments PLC\n(\"UKOG\" or the \"Company\")\nAcquisition of 100% interest in 300 sq km Licence in Weald Kimmeridge Limestone Oil Province \n \nUK Oil & Gas Investments PLC (London AIM and ISDX: UKOG) announces that it has signed agreements with Celtique Energie and Magellan Petroleum to acquire 100% ownership of the 300 sq km (116 sq miles) Weald Basin licence PEDL234 (the \"Licence\"). The acquisitions more than double the Company's net acreage holdings in the prime Kimmeridge Limestone Oil province, as proven by the Horse Hill-1 (\"HH-1\") oil discovery which, as previously reported on 21 March 2016, flow tested at a commercial aggregate stable dry oil rate of 1,688 barrels of oil per day from the Kimmeridge Limestones and Portland section. \nImportantly, the Licence includes regulatory permission to drill the Kimmeridge at the Broadford Bridge-1 (\"BB-1\") site. Furthermore, the licence contains a further mapped gas appraisal opportunity, in the eastern extension of the Godley Bridge Portland gas discovery.\nThe transactions are conditional upon the extension of the Licence and the usual regulatory approvals being granted by the Secretary of State for Energy and Climate Change (\"Secretary of State\").\nA map showing the Licence and its situation in the Weald Basin and Kimmeridge Oil Province is available here http://www.rns-pdf.londonstockexchange.com/rns/9264A_1-2016-6-10.pdf. \nTransaction Summary \nFor a total consideration of £3.5 million, the Company will obtain 100% ownership of the Licence via:\n - a Share Purchase Agreement (\"SPA\") with Celtique Energie Petroleum Limited (\"CEPL\") to acquire Celtique Energie Weald Limited (\"CEWL\") who own a direct 50% interest in the Licence and;\n - an Asset Transfer Agreement with Magellan Petroleum (UK) limited (\"Magellan\") who own a 50% interest in the Licence\nAdditionally, via a second Asset Transfer Agreement, the Company will be assigned Magellan's 22.5% direct interest in offshore Isle of Wight licence P1916, taking UKOG's interest to 100%. \nThe consideration to CEWL, with an effective date of 10 June 2016, is comprised of £625,000 in cash and £1.125 million in the form of 71,324,415 UKOG ordinary shares. T...