UK Oil & Gas (UKOG) has wrapped up the acquisition of the 22% stake in Horse Hill Developments (HHDL) in the UK from Gunsynd, Primorus Investments and Solo Oil.
Image: Onshore drilling. Photo: courtesy of Stuart Miles/Freedigitalphotos.net.
These acquisitions were announced on 20 and 30 August 2018.
The Company now owns 71.9% of HHDL and holds a 46.735% beneficial interest in the onshore Weald Basin licences PEDL137 and PEDL246 (“the Licences”). UKOG is now the single largest shareholder in HHDL and the largest single largest beneficiary in the Licences.
Transaction Summary
For a total consideration of £6.6 million, the Company has acquired the Vendors’ 22% interest in HHDL, equating to a 14.3% beneficial interest in the Licences. The total Consideration is comprised of £425,000 payable in cash and £6,175,000 in the form of the issue of new ordinary shares in UKOG (“Consideration Shares”) as outlined in the announcements of the 20 and 30 August 2018.
As such an application has been made for 328,858,149 new ordinary shares to be admitted to trading on AIM and it is anticipated that trading in such shares will commence on or around 28 September 2018.
Following Admission, the Company’s enlarged issued share capital will comprise 5,566,524,206 ordinary shares. The Company does not hold any shares in treasury.
This figure of 5,566,524,206 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.
HHDL and the Company’s Interest in the Licences
HHDL owns a 65% working interest and operatorship of the Licences. UKOG owns a 71.9% beneficial shareholding in HHDL, which equates to a 46.735% net working interest in the Licences. The remaining 35% interest in the Licences is held by Magellan Petroleum (UK) Limited.
Source: Company Press Release