LONDON (Alliance News) - UK Oil and Gas Investments PLC Monday took full ownership of the PEDL126 license in the Weald basin in the UK by buying the 40% stake it didn't already own.
UK Oil and Gas, one of the companies which recently made an oil discovery at the Horse Hill project near Gatwick airport, also in the Weald basin, said it bought the 40% stake in the PEDL126 license from Magellan Petroleum (UK) Ltd for GBP1, to give UK Oil and Gas a 100% stake in the license, a deal it originally announced in February.
The PEDL126 license is situated to the North-East of Waterlooville in Hampshire. It includes the Markwells Wood 1 Great Oolite oil discovery, which produced a peak flow period of 100 barrels of oil equivalent a day when tested between 2011 and 2012, and it produced a total of 3,931 barrels of oil over a six month well test period.
UK Oil and Gas said it believes the Markwells Wood discovery will link to the adjacent Homdean field, in which it owns a 10% stake. The company said the Homdean field produced 2.1 million barrels in 2014.
"The company is delighted to now include 100% of the Markwells Wood discovery to its growing and exciting Weald basin portfolio. We thank Magellan for their stewardship of the asset over the years.
We are now finalising our evaluation of the Markwells Wood asset and will report on our findings later this year," said Chief Executive Stephen Sanderson.
UK Oil and Gas said it continues to work with Magellan to "unlock value from the Weald basin".
Last Thursday, UK Oil and Gas, alongside its partners Magellan, Doriemus PLC, Stellar Resources PLC, Solo Oil PLC and Alba Mineral Resources PLC announced a potentially huge oil discovery at the Horse Hill 1 well, which is also on the Weald basin, that could lead to between 3.0 billion to 15.0 million barrels of oil being recovered from the field.
UK Oil and Gas shares dropped 2.3% to 2.20 pence per share on Monday morning.
By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance
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