LONDON (Alliance News) - UK Oil & Gas Investments PLC shares rose early Monday after the company said it has struck a deal to increase its stake in two UK oil licences offshore the Isle of Wight.
The company is to increase its stake in the P1916 licence to 72.5% from 65% and in the PEDL126 licence to 60% from 50%. It is buying the stakes from UK-listed oil and gas peer Egdon Resources PLC for a nominal consideration of GBP10,000.
"UKOG is optimistic about the potential of the offshore Isle of Wight licence, which contains the large drill ready M Prospect, and also about the Markwells Wood-1 oil discovery, which lies immediately adjacent to and within the mapped oil water contact of the producing Horndean oil field in which UKOG has a participating interest," said UK Oil & Gas Chairman David Lenigas.
UK Oil & Gas shares were up 12% to 0.475 pence on Monday morning, while Egdon shares were down 2.9% to 8.86 pence.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
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