UK Oil and Gas Investments share price falls after buying Horse Hill stake from Angus Energy
UK Oil and Gas Investments (Ukog), the company behind the so-called Gatwick gusher, has bought up a stake in the Horse Hill well development, increasing its stake.
The firm has acquired Angus Energy's 7.8 per cent stake in the Weald Basin development area in a £1.8m cash and share deal, increasing its holding from just under a fifth to just over a quarter.
Shares in the Aim-listed oil company fell more than three per cent in early trading after initially opening higher.
"Following the recent highly significant HH-1 [Horse Hill] flow test results this acquisition is an important and entirely logical step for the company. It provides us with a far more material interest in the exciting HH-1 Portland and Kimmeridge limestone oil discovery, and importantly, is part of our ongoing strategy to consolidate and expand our licence position in the new and potentially significant Kimmeridge Limestone oil province," said executive chairman Stephen Sanderson.
UKOG said in March it had "unequivocal proof of concept" from well tests at the site, raising the prospect of substantial oil output from Horse Hill.