UK Oil & Gas Investments, the company that made one of the biggest onshore oil discoveries in Britain near Gatwick airport, just gave a huge sign on how it reckons a certain area in Sussex is likely to reap a whole glut of oil in the near future.
UKOG revealed in a regulatory announcement that it has bought a further 10% interest in UK onshore Weald Basin licence PEDL143, which contains the Holmwood Prospect. It bought it from Warwick Energy Exploration and Production Limited. This has boosted its share to 30%. In June it bought 20% from
The 91.8 square kilometres (35.5 square miles) PEDL143 licence is located to the immediate west of the Horse Hill-1 oil field which has 9,245 million barrels of oil in just 55 square miles covered by the Horse Hill licences (PEDL137 and PEDL246).
The Horse Hill-1 well is located within onshore exploration Licence PEDL137, on the northern side of the Weald Basin near Gatwick Airport. UKOG has a 20.163% interest in PEDL137.
UKOG intends to drill a total depth of approximately 4,600 ft (1,400 metres) true vertical depth to penetrate the Upper and Lower Portland Sandstone reservoir targets. It will later report back to tell investors if it has discovered more oil. But this will not happen until next Winter.>
“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 Licence from Warwick.
“These two transactions now provide the Company with a material 30% overall participating interest in the Holmwood exploration well and Licence,” said Stephen Sanderson, UKOG’s Executive Chairman.
“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 Licence as calculated by Nutech in their recent study of the Company’s licences and wider Weald.”
On June 24, UKOG revealed that it made a pre-tax net loss of £383,000 ($US602,327) for the six months ending March 31. This is an even bigger loss than the £290,000 ($US456,070) it made in the same period a year earlier.>
However, the latest stake acquisition will only cost the group £25,000 and a 20% share of the Holmwood-1 exploration drilling costs.
NOW WATCH: An Iranian actress who posted Instagram photos of herself without a hijab was forced to flee the country
NOW WATCH: Briefing videos
Business Insider Emails & Alerts
Site highlights each day to your inbox.