UKOG is acquiring Solo Oil's 30% interest in PEDL331 for GBPS 350,000 (US$ 439,000), and will increase its share of the licence to 95%, subject to OGA consent. UKOG announced on 12 December 2018 that it had entered into a binding heads of terms with Solo, and advised that the transaction fee will be satisfied through GBPS 90,450 (US$ 113,000) cash plus 17,989,326 new ordinary shares in UKOG. PEDL331 contains the Arreton 2 conventional oil discovery (1974, BG, 2,813m), consisting of three stacked Jurassic oil pools with an aggregate gross P50 oil in place of 127 MMBO. The acquisition will correspondingly increase UKOG's share of the Arreton discovery's recoverable Contingent Resource volumes by 46%, from 10.2 MMBO to a material 14.9 MMBO UKOG net. A further significant increase in oil recovery factor above the current estimated 12% is likely via adoption of an early stage reservoir pressure support scheme (i.e. water reinjection). PEDL331 covers 200 sq km over Isle of Wight onshore blocks SZ38a, 47, 48a, 57 & 58a, and was awarded in the 14th Landward Round, valid for five years initial term commencing 21 July 2016. The Arreton-3 appraisal well, is scheduled to be drilled, cored and tested in Q1 2020. After completion of Arreton-3 flow testing, UKOG plans to drill the larger look-alike Arreton South exploration prospect. Also, within PEDL331 is the landward extension of the M Prospect in adjacent offshore licence P1916, plus further undrilled oil prospects in tight limestones and shales of the Kimmeridge Clay, Oxford Clay and Lias Formations comparable to the Horse Hill Weald area licences. In 2016, Doriemus acquired Angus Energy's (now UKOG) 5% working interest PEDL331. UKOG also became operator. Pending completion of the PEDL331 transaction, participants are UK Oil and Gas Investments Plc (65% + Op), Solo Oil Plc (30%), and Doriemus Plc (5%).<P /><P />
United Kingdom, PEDL 331