UK Oil & Gas Investments share price: Group snaps up 40% in Markwells Wood discovery

on Feb 20, 2015
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UK Oil & Gas Investments Plc (LON:UKOG) has this morning acquired the remaining 40 percent in the Markwells Wood discovery.

**Highlights from the company statement:**
The Board of UKOG (AIM: UKOG) is pleased to announce that its fully-owned subsidiary, UKOG (GB) Limited, has signed an agreement with Magellan Petroleum (UK) Limited (“Magellan”) to acquire their 40% interest in onshore licence PEDL 126 (“Markwells Wood”) in the Weald Basin for a nominal amount of £1, subject to normal regulatory approvals. This acquisition increases UKOG’s interest in Markwells Wood to 100%.

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UK onshore licence PEDL126 in the Weald Basin contains the Markwells Wood-1 Great Oolite oil discovery.

Markwells Wood was discovered in 2011. An extended well test programme over a 6 month period from end 2011 to May 2012 was carried out, producing 3,931 barrels of oil. The peak flow rate over a 24 hour period was approximately 100 barrels of oil per day.

UKOG’s current interpretation of the Markwells Wood-1 well data and 2D seismic over the discovery and the neighbouring producing Horndean oil field (in which UKOG has a 10% interest) shows that Markwells Wood likely represents the eastern extension of the Horndean field, sharing the same structural spill point and interpreted oil down to depth of 4,446 ft TVDss.

Further details on Markwells Wood are provided in UKOG’s corporate presentation of November 2014, available on UKOG’s website: www.ukogplc.com.

UKOG and Magellan continue to work together to unlock value from our other joint venture licences in the Weald and Wessex Basins.

Stephen Sanderson, the Company’s CEO, commented:
“The acquisition represents an excellent opportunity to further consolidate the Company’s interest in the Markwells Wood oil discovery. UKOG’s increased ownership will enable us to more fully exploit identified subsurface and infrastructure synergies shared with the adjacent producing Horndean oil field in which the Company holds a 10% interest. Given that we view Markwells Wood to be the eastern extension of the Horndean oil accumulation, we look forward to working with IGas Energy Plc, operator of Horndean, to help realise value from the significant oil in place demonstrated by the discovery”.

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