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LONDON (Alliance News) - UK Oil & Gas PLC said Tuesday it had built a majority interest in the PEDL143 Holmwood oil field licence by adding to its stake in the onshore Surrey site.
UK Oil & gas paid GBP300,000 for a further 20% stake held by Europa Oil & Gas Ltd and GBP112,500 for the 7.5% stake held by Union Jack Oil PLC. The purchases will be paid through the issue of shares at 1.156 pence each, with 26.0 million to Europa and 9.7 million to Union Jack.
Shares in UK Oil & Gas were 0.5% lower at 1.13 pence on Tuesday.
After the purchase, UK Oil & Gas will hold a majority 67.5% interest in the PEDL143 licence.
"We are delighted to acquire this further significant share of such a highly prospective exploration licence, which contains, in UKOG's view, one of the best undrilled Portland and Kimmeridge prospects in the Weald Basin," UK Oil & Gas Chief Executive Stephen Sanderson said.
"The proximity to UKOG's Horse Hill field, together with the company's operational and subsurface expertise in the area, adds potentially significant operational and cost synergies to the project's overall benefit," Sanderson added. "UKOG, as the new licence operator, will now push ahead to finalise a new well location outside of the Surrey Hills AONB."
"This acquisition is in full accordance with our stated strategy of holding majority operated interests in key assets", Sanderson continued.
In a separate announcement Tuesday, Union Jack Executive Chair David Bramhill explained its "modest investment in Holmwood was made with a view to capitalising on the increasing activity within the Weald Basin."
"This agreement allows Union Jack to now concentrate totally on our focused areas of the East Midlands, Humber Basin and East Yorkshire," Bramhill added.
Shares in Union Jack were 3.0% higher at 0.098 pence on Tuesday, Europa Oil & Gas down 1.4% at 2.81 pence.