UKOG has conditionally agreed to acquire Northern Petroleum UK’s production and exploration oil and gas licence interests in the Weald Basin.
The assets will be acquired for a total consideration of £1.5 million. Further amounts up to a maximum of £50,000 may be payable in respect of net working capital of the investment.
NOP interests
NOP's UK oil and gas licence interests comprise:
- A 10% and 5% working interest in the producing Horndean and Avington Oilfields, respectively, in the Weald Basin, both of which are operated by IGas Energy
- A 50% interest in two further exploration licences in the Weald Basin
- A 65% interest in the offshore licence P1916 which flanks the western part of the Isle of Wight.
In the year ended 31 December 2013, the investment's average daily share of production amounted to approximately 20 barrels of oil and turnover and gross profit amounted to €591,000 and €345,000 respectively.
Comments
David Lenigas, the Company's Chairman, commented: "This is a significant new investment for UKOG, as we continue to grow our presence in the UK and provides UKOG with a direct interest in oil production. We look forward to working with IGas, the operator of the Horndean and Avington licences. These new assets complement UKOG's existing Weald Basin investments in the producing Lidsey and Brockham Oil Fields and the prospective Horse Hill-1 well."
Adapted from press release by Katie Woodward