Business
Acquisition of Further Interest in HHDL
Acquisition of Further Interest in HHDL.
About this update from Uk Oil & Gas Plc
[{"type":"text","content":"\n \nRNS Number : 2237Y UK Oil & Gas PLC 20 August 2018 \n\n \nUK Oil & Gas PLC\n(\"UKOG\" or the \"Company\")\n \nAcquisition of Further Interest in Horse Hill Oil Discovery and Licences, Weald Basin, UK\n \nUK Oil & Gas PLC (London AIM: UKOG) is pleased to announce that it has entered into sale and purchase agreements with Gunsynd PLC (\"Gunsynd\") and Primorus Investments PLC (\"Primorus\") to acquire their combined 7% shareholding in Horse Hill Developments Ltd (\"HHDL\"), the operator and 65% interest holder in the Horse Hill-1 (\"HH-1\") Portland and Kimmeridge Limestone oil discovery and 55 square mile (143 km2) PEDL137 and PEDL246 licences (\"the Licences\"). Upon completion, the Company will hold a majority 56.9% HHDL shareholding, equating to a 36.985% beneficial Licence interest, the largest single beneficial interest holding in both Licences.\n \nAs previously reported in July and August, a comprehensive 150-day Extended Well Test programme, designed to confirm the HH-1 well's commerciality is in progress. Results to date from the Portland oil pool have been very positive, with short-term high rate tests achieving stable implied daily pumped rates of 401 and 414 barrels of oil per day of dry 36 API oil over two periods of 6 and 2 hours, respectively. Testing of the two Kimmeridge Limestone oil pools will commence following completion of the Portland test.\n \nTransaction Summary\n \nFor a total consideration of £1,925,000, the Company will receive Gunsynd's 2% and Primorus' 5% shareholding in HHDL, equating to a further 4.55% beneficial interest in the Licences. The total consideration, with an effective date of 17 August 2018, comprises £425,000 payable in cash and £1,500,000 through the issue of 85,714,286 new ordinary shares in UKOG (\"Consideration Shares\"). The Consideration Shares are calculated based on the closing UKOG share price on 16 August 2018 of 1.75 pence. Completion of both acquisitions, 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.\n \nStephen Sanderson, UKOG's Chief Executive, commented:\n \n\"Although modest in overall size, these acquisitions, the first under the Company's new AIM operating company status, are highly strategic in that they deliver ...