UKOG has announced that it has today signed a binding heads of agreement (HOA) to subscribe £750 000 in cash for a further 12.5% equity interest in Horse Hill Development Ltd (HHDL), a special purpose company that has the rights to a 65% participating interest and operatorship in the UK onshore Horse Hill Field in the Weald Basin near Gatwick Airport, taking UKOG's interest from 7.5% to 20% (the New HHDL Subscription).
UKOG now has binding agreements in place to own a direct 20% interest in HHDL and an additional interest by virtue of its 6% ownership in Angus Energy Limited ("Angus Energy"). Angus Energy owns 40% of HHDL.
David Lenigas, the Company's Chairman, commented:
"This further investment in Horse Hill now makes UKOG the second largest shareholder in the Horse Hill Development consortium, behind Angus Energy. We are pleased to have secured this increased exposure to this exciting conventional oil and gas play in the Weald Basin just prior to spudding of the Horse Hill - 1 well."
About Horse Hill
The Horse Hill Petroleum Exploration and Development Licence No. 137 (PEDL 137) is located in Surrey.
Magellan Petroleum (UK) Limited, a subsidiary of NASDAQ-listed Magellan Petroleum Corporation, currently owns 100% of the 99.29 km2 (24 525 acre) PEDL 137 and has agreements with HHDL to earn a direct 65% participating interest and operatorship in the licence, under certain contractual conditions, by the drilling of the proposed 2646 m (8680 ft) Horse Hill-1 well by the end of August 2014.
HHDL is a special purpose company, which was formed on 10 December 2013. UKOG announced its first 7.5% investment in HHDL on 20 December 2013.
Adapted from a press release by David Bizley
Read the article online at: https://www.oilfieldtechnology.com/drilling-and-production/13082014/ukog-increases-its-interest-in-horse-hill-to-20-percent/