UK Oil & Gas plc (UKOG) said it had completed the second instalment due under the sale and purchase agreement with PW Well Test Ltd (PW) for surface production equipment for Horse Hill oil site in Surrey.
UKOG bought the equipment from PW for £1.65 million with the purchase to be made in three equal instalments of £550,000.
An initial instalment was paid in July 2020 when the company signed the agreement to buy the equipment via equal amounts of cash and UKOG shares.
A second and third instalment were to be made at six-monthly intervals, or earlier, at UKOG’s discretion.
Each payment would be either wholly in cash, or wholly in shares, or part cash/part shares, each at UKOG’s sole discretion.
UKOG has made the second payment of £550,000 to PW, via the issue of 412,475,262 UKOG shares, at a five-day volume weighted average price (VWAP) of £0.00133.