(Alliance News) - UK Oil & Gas PLC on Wednesday said it has paid the final deferred sum for the acquisition of the Horse Hill field in Surrey, England.
In August 2019, UKOG announced the purchase of Magellan Petroleum UK Investment Holdings Ltd from Tellurian Investments LLC for GBP12 million, of which GBP8 million was upfront, GBP5 million in cash and GBP3 million in shares.
The deferred consideration of GBP4 million was all to be made in shares.
UKOG has now paid the final GBP1 million of that, issuing 255.1 million new shares to Tellurian.
Magellan owns 35% of the Horse Hill discovery, which includes the PEDL137 and PEDL246 licences. The acquisition took UKOG's stake to 86%. Alba Mineral Resources PLC owns 12%.
Horse Hill was granted a full long-term production consent by the UK Oil & Gas Authority in the middle of March.
UKOG shares were 0.5% higher on Wednesday afternoon in London at 0.38 pence each.
On Tuesday, UKOG reported annual results, showing a narrowed pretax loss for the year to September of GBP5.4 million from GBP16.7 million. The year before had been hurt by a GBP11.6 million exploration write-off.
Revenue fell slightly to GBP213,000 from GBP225,000.
Chair Allen Howard on Tuesday said the Magellan deal was one of the biggest of a number of hurdles passed in its financial year.
By George Collard; georgecollard@alliancenews.com
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Alba Mineral Resources (ALBA)
Uk Oil & Gas (UKOG)