UKOG acquires Weald Basin PEDL126 from Magellan Petroleum

UK Oil & Gas Investments (UKOG) has completed the acquisition of the remaining 40% stake in the Weald Basin onshore licence, PEDL126, from Magellan Petroleum.

Located in West Sussex and Hampshire in the western area of the Weald Basin, PEDL126 has an area of 11.2 km², comprising blocks SU/71a and SU/81a, and contains the Markwells Wood-1 Great Oolite oil discovery.

UKOG chief executive officer Stephen Sanderson said: "The Company is delighted to now include 100% of the Markwells Wood discovery to its growing and exciting Weald Basin portfolio.

"We are now finalising our evaluation of the Markwells Wood asset and will report on our findings later this year."

Drilled in 2011, the Markwells Wood-1 discovery yielded 3,931 barrels of oil during an extended well test programme carried out over a six-month period from November 2011 to May 2012, with 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 shows that the PEDL126 probably 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.

The Horndean field, in which UKOG has a 10% interest, produced 2.12 million barrels to end 2014.

PEDL126 acquisition represents 21st asset transaction completed by UKOG since 2013, including the purchase of interests in four UK onshore producing fields, Horndean (10%), Avington (5%), Lidsey (4.2%) and Brockham (3.6%).

In addition, the company acquired interests in three oil discoveries at Markwells Wood-1 (100%), Horse Hill-1 (20.358%) and Baxters Copse-1 (50%).