Onshore-focused junior exploration UK Oil & Gas reported Monday that it has completed the acquisition of a 40-percent interest in the Weald Basin onshore license, PEDL126, located in southern England, from Magellan Petroleum, bringing UKOG's interest in the license to 100 percent. The PEDL126 license contains the Markwells Wood-1 Great Oolite oil discovery.
UKOG said that the latest acquisition is the 21st asset transaction the company has completed since 2013. UKOG now has interests in four UK onshore producing fields: Horndean (10 percent), Avington (five percent), Lidsey (4.2 percent) and Brockham (3.6 percent). The firm also has interests in three oil discoveries at Markwells Wood-1 (100 percent), Horse Hill-1 (20.4 percent) and Baxters Copse-1 (50 percent). Meanwhile, the firm noted that it is also the operator of what it described as the "promising" offshore Isle of Wight exploration license, P1916 (77.5 percent).
The Markwells Wood license covers an area of 4.2 square miles and comprises blocks SU/71a and SU/81a. It is located in West Sussex and Hampshire. The Markwells Wood-1 discovery was made in 2011. And extended well test program produced 3,931 barrels of oil over a six-month period, with the peak flow rate over a 24-hour period hitting 100 barrels per day.
UKOG said its current interpretation of the Markwells Wood-1 well data and 2D seismic data over the discovery and the neighbouring producing Horndean oil field shows that Markwells Wood probably represents the eastern extension of the Horndean field. The Horndean field produced 2.12 million barrels since its discovery to the end of 2014.
UKOG CEO Stephen Sanderson commented in a company statement:
"The company is delighted to now include 100 percent of the Markwells Wood discovery to its growing and exciting Weald Basin portfolio. We thank Magellan for their stewardship of the asset over the years. We are now finalizing our evaluation of the Markwells Wood asset and will report on our findings later this year."
Last week, UKOG reported that US petrophysical analysts Nutech had estimated its Horse Hill-1 discovery, located near Gatwick Airport south of London, contains total oil in place of 158 million barrels per square mile.
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