LONDON (Alliance News) - UK Oil and Gas Investments PLC saw its shares rise on Tuesday after it said it had finished an evaluation and review of its newly acquired assets from Northern Petroleum PLC earlier this year.
UK Oil and Gas received USD50,651 for the month of October from fellow AIM-listed Igas Energy PLC for its share of oil production from the Hordean and Avington oilfields in the Weald basin in southern England.
The two assets formerly belonged to Northern Petroleum PLC before UK Oil and Gas acquired the two licenses, and a further three, for GBP1.5 million in cash during July. UK Oil and Gas holds a 10% interest in the Hordean field and a 5% interest in the Avington field.
The Hordean field has a proven reserve of 717,000 barrels of oil, of which UK Oil and Gas is entitled to 10%. The Avington field has a proven reserve of 40,000 barrels of oil, of which UK oil and Gas is entitled to 5%.
The company also acquired a 50% interest in two further exploration licences in the Weald Basin and a 65% interest in one offshore licence which flanks the western part of the Isle of Wight.
The license flanking the Isle of Wight, P 1916, contains a large, ready to drill prospect and must have a well drilled on the prospect before February 2016. The company has also applied for adjacent acreage in partnership with Angus Energy Ltd and Solo Oil PLC in the UK 14th landward licensing round.
One of the other licenses acquired, PEDL 233, will be drilled by the operator, IGas, in 2015. UK Oil and Gas holds a 50% interest in the license. The estimated contingent resource at the license is 3.1 million barrels of oil, which UK Oil and Gas are entitled to half.
The last license, PEDL 126, has no declared reserves and will be further evaluated by the company, which has a 50% interest.
"Our recently completed review of the North Petroleum's interests has highlighted the long-life revenue potential of the newly acquired Horndean and Avington oil fields and also the significant exploration and development potential that exists in the Company's expanded UK acreage," said Chairman David Lenigas.
UK Oil and Gas shares were up 7.4% to 0.451 pence per share Tuesday morning.
By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance
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