UK Oil & Gas plc (UKOG) and its potential farm-in partner have agreed to extend the conditional binding Horse Hill term sheet allegedly without all shareholders’ approval.
CONSENTS
UKOG and Pennpetro Energy plc extended the deal, signed originally in March, to 30 June 2024.
Pennpetro will farm-in to the Horse Hill Oil Field on an incremental production only basis by paying 100% of both a 12 km² 3D seismic survey and a new crestal production well, Horse Hill-3.
The 3D seismic acquisition is currently targeted for H1 2024.
UKOG today said that the farm-in remained subject to completion of the formal farm-in agreement and necessary regulatory consents.
The company currently holds an effective 85.635% interest in Horse Hill and the surrounding PEDL137 and PEDL246 licences.
Investor Alba Mineral Resources plc which owns an 11.765% effective interest commented that the proposed transaction remained subject to all shareholders’ approval, including Alba.