UK Oil & Gas Regulatory News (UKOG)

For Immediate Release

6 August 2014

UK Oil & Gas Investments PLC

("UKOG" or the "Company")

Update on Horse Hill Prospect, UK.

Environment Agency Permits Granted

UKOG (AIM: UKOG) today announces that the operator, Horse Hill Developments Ltd ("HHDL"), has now been granted final approvals from the UK Environment Agency to proceed with the drilling of the Horse Hill -1 well at Horse Hill in Surrey.

UKOG has a binding agreement in place to own a direct 7.5% interest in HHDL, a special purpose company that owns a 65% participating interest and operatorship of the Horse Hill Oil Field in the Weald Basin and an additional interest by virtue of it's 6% ownership in the License's operator, Angus Energy. Angus Energy owns 40% of HHDL.

David Lenigas, the Company's Chairman, commented:

"Recent heavy rainfall in the area has delayed the completion of site construction works, however, the concrete cellar is on-site and is ready to install once the ground conditions allow. We are therefore looking forward to spudding of this important Horse Hill-1 well shortly."

The participants in the Horse Hill-1 well are HHDL (Operator) with a 65% working interest and Magellan Petroleum Corporation with a 35% interest.

-ENDS-

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