UKOG Completes PEDL143 Farm-in
UK Oil & Gas Investments plc announced Monday that it has completed a farm-in agreement with Warwick Energy Exploration and Production Limited to acquire a further 10 percent interest in the onshore UK Weald Basin license, PEDL143.
Subject to receipt of the necessary consent from the Oil and Gas Authority, UKOG will pay a consideration of £25,000 ($37,884) and a 20 percent share of the Holmwood-1 exploration drilling costs in order to acquire a full 10 percent working interest in PEDL143 from Warwick. The latest farm-in increases UKOG’s interest in the license to 30 percent.
PEDL143 covers 35.5 square miles and is located to the west of Horse Hill license PEDL137, in which UKOG has a 20.163 percent interest, and to the south of the Brockham oil field, license PL235, in which UKOG has an interest via its 6 percent ownership of Angus Energy Limited.
Stephen Sanderson, UKOG’s executive chairman commented in a company statement:
“We are delighted to follow up our very recent news on the OGA’s consent to the Egdon PEDL143 farm-in with the acquisition of a further interest in the license from Warwick. These two transactions now provide the company with a material 30 percent overall participating interest in the Holmwood exploration well and license.
“With this acquisition the Holmwood well now provides an excellent low to moderate risk opportunity for UKOG to access a mean estimated 1.68 million barrels of net conventional prospective resources together with the opportunity to confirm the Kimmeridge tight oil in place within the license as calculated by Nutech in their recent study of the company’s licenses and wider Weald. We look forward to working with the partnership and to drilling the Holmwood-1 well next winter. ”
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