AIM-listedannounced on Wednesday that it had finalised its acquisition of Magellan Petroleum Investment Holdings Limited from Tellurian Investments for a total of £12 million in the form of cash and shares.
The acquisition of Magellan also means gaining its 35% direct interest in the Horse Hill oil field, held through the PEDL137 and PEDL246 licences.
By procuring the additional interest, UKOJ’s holding in its flagship asset has significantly increased, moving from just over half at 50.635% to 85.635%, a controlling portion.
The acquisition holds particular significance for the firm insofar that it has created a 69% increase in UKOG's associated Horse Hill net asset value and net reserves and resources.
Commenting on the news, Stephen Sanderson, UKOG's Chief Executive, stated, "The completion of this transformational acquisition of a further 35% in our flagship asset means UKOG is now firmly in the driving seat at Horse Hill, holding a controlling 85.635% interest.
Our operations team is now poised to commence simultaneous Horse Hill-2/2z Portland drilling and HH-1 Kimmeridge test operations before month's end.”
Following the acquisition, the ongoing civil works stated at the Horse Hill site are expected to be completed this week.
Mr Sanderson further added, “The remainder of the year at Horse Hill looks set to be highly eventful and, hopefully, financially transformative, as we drive to seek establishing permanent oil production by year end."
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