UK Oil and Gas ups stake in Horse Hill Developments
AIM-listed investor UK Oil and Gas has upped its stake in the Horse Hill oil discovery via a £4.5m acquisition of fellow AIM-listed firm Solo Oil's interest in the project's operator.
UKOG entered into a sale and purchase agreement with Solo to acquire the firm's 15% shareholding in Horse Hill Developments, the operator and 65% interest holder in the Portland and Kimmeridge Limestone oil discovery, as well as the PEDL137 and PEDL246 licences.
Upon completion, UKOG will hold a majority 71.9% interest in Horse Hill Developments and a 46.7% beneficial interest in the licences.
UKOG revealed the acquisition will be satisfied through the issue of 234.04m new ordinary shares of 1.92p each.
Stephen Sanderson, UKOG's chief executive, said: "This further strategic acquisition firmly cements UKOG as the dominant player in the Horse Hill Portland and Kimmeridge oil discoveries and Licences.
"With the positive Portland test results to date, UKOG, supported by its remaining three coventurers, can now steer the way towards permanent HH oil production in 2019."
In order to ensure parity with its recent 7% acquisition of HHDL, UKOG also agreed to issue London-listed players Gunsynd and Primorus Investments a further 2.6m and 6.5m shares, respectively.
As of 0820 BST, UKOG shares had lost 2.27% to 4.96p.