UK Oil & Gas Investments (UKOG) has acquired all of Angus Energy’s remaining 7.8% interest in onshore Weald Basin licences PEDL137 and PEDL246.
Following the acquisition, the company has increased its net working interest in the licences from the existing 19.968% to 27.3%.
Together, the licences cover an area of 55 square miles and comprise the new Horse Hill-1 (HH-1) Portland sandstone and Kimmeridge Limestone oil discoveries north of Gatwick Airport.
UKOG will receive Angus’ 7.8% interest in the licences through the purchase of the latter’s remaining 12% shareholding in Horse Hill Developments (HHDL) for £1.8m.
According to the company, the transaction requires no further regulatory approvals.
HHDL owns a 65% working interest and operatorship of the Weald Basin licences PEDL137 and PEDL246.
UKOG will now own a 42% shareholding in HHDL, which is equal to a 27.3% net working interest in the licences. Magellan Petroleum owns the remaining 35% interest in the licences.
The HH-1 well is located within onshore exploration licence PEDL137 on the northern side of the Weald Basin. PEDL246 is located next to the east of PEDL137.
The company owns a 27.3% interest in the licences.
UKOG’s executive chairman Stephen Sanderson said: "Following the recent highly significant HH-1 flow test results this acquisition is an important and entirely logical step for the company.
"It provides us with a far more material interest in the exciting HH-1 Portland and Kimmeridge limestone oil discovery, and importantly, is part of our ongoing strategy to consolidate and expand our licence position in the new and potentially significant Kimmeridge Limestone oil province."
