UKOG significantly increased its interest in the producing Horse Hill oil field, its flagship asset, to a controlling 85.635%
UK Oil & Ga announce that as part of its previously announced acquisition of Magellan Petroleum (UK) Investment Holdings (“Magellan”) it has paid the final £1 million deferred consideration element to Tellurian Investments LLC (“Tellurian”), the former owner. Via this payment, UKOG now holds irrevocable ownership of Magellan, renamed UKOG 137/246 Ltd, which owns a direct 35% interest in the Horse Hill oil field and surrounding highly prospective PEDL137 and PEDL246 licences.
Via the Magellan acquisition, UKOG significantly increased its interest in the producing Horse Hill oil field, its flagship asset, to a controlling 85.635%. Horse Hill was granted full long-term production consent by the Oil and Gas Authority on 12 March 2020.
As detailed in the Company’s RNS of 7 August and 11 September 2019, UKOG acquired Magellan’s entire share capital for a consideration of £12 million via an initial consideration of £8 million in cash and shares and two deferred considerations of £3 million and £1 million in shares.
In payment of the final £1 million deferred share consideration, due on or before 31 March 2020, UKOG has allotted 255,102,041 new ordinary shares to Tellurian. The shares rank pari passu in all respects with the existing ordinary shares. It is anticipated that the shares will be admitted to trading on AIM on or around 7 April 2020 (“Admission”).
Following Admission of the Investor Shares, the Company’s issued share capital will comprise 7,821,571,059 ordinary shares. As the Company does not hold any shares in treasury, this figure of ordinary shares may be used by shareholders in the Company as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change in their interest in, the share capital of the Company under the FCA’s Disclosure and Transparency Rules.
Source: Company Press Release