Business
Agreement to buy 10% interest in UK oil fields
Agreement to buy 10% interest in UK oil fields.
About this update from Uk Oil & Gas Plc
[{"type":"text","content":"\n \nRNS Number : 6571X UK Oil & Gas Investments PLC 15 January 2014 \n \n\n \n15 January 2014\nUK Oil & Gas Investments Plc\n(\"UKOG\" or the \"Company\")\n \nUKOG agrees to buy 10% interests in Eakring-Dukes Wood and Kirklington oil fields in the UK\n \nUK Oil & Gas Plc (AIM: UKOG) announces that it has reached agreement to acquire Angus Energy Eakring Development Limited (\"Eakring\") and Angus Energy Kirklington Development Limited (\"Kirklington\") which in turn own 10% interests in onshore UK Petroleum Exploration and Development Licences (\"PEDLs\") PEDL 118 and PEDL 203 located in Nottinghamshire in the East Midlands Petroleum Province. The operators of these PEDL's is Egdon Resources Plc (\"Egdon\"). UKOG has the rights to increase its ownership of PEDL 118 to 20% by paying 30% of the cost of the next well to be drilled on the licence.\n \nThe total aggregate consideration for Eakring-Dukes Wood and Kirklington is £290,000, comprising a cash sum of £140,000 and the issue of 18,750,000 ordinary shares to a market value of £150,000 (equivalent to a price of 0.8p per share) and will be escrowed for a period of 3 months once issued. The deal is expected to close in full within 30 days.\n \n \nCommenting on the acquisition UKOG's Chairman David Lenigas commented:\n \n\"UKOG are looking forward to working on these exciting oil fields with Egdon, the operators of the Eakring-Dukes Wood and Kirklington oil fields, who are evaluating a short -term restart of production and a long-term growth plan for the fields.\"\n \n\"This transaction is our second UK onshore oil investment and provides the Company exposure to two further conventional oil plays where we see significant upside potential going forward at a time of growing investment interest in the UK's onshore hydrocarbon sector by International Oil and Gas companies.\"\n \n \nAbout PEDL 118 and PEDL 203:\n \nLicence PEDL 118 contains the Eakring-Dukes Wood abandoned oil field which produced from a number of stacked shallow sandstone reservoirs of Carboniferous age from 1940 until 1966. The field was discovered in 1939 and extensively drilled and produced during the Second World War, where production peaked at 1600 barrels of oil per day in 1941. A water flood was initiated in 1947 a...