“UKOG has announced that it has acquired an additional 7.8% beneficial interest in the Horse Hill licence, from Angus Energy for a £1.8m consideration. The interest acquisition increases UKOG’s stake in the Horse Hill licence to 27.3% (19.97% prior). £1m of the consideration will be paid in cash, with the remaining £0.8m in the form of 43.87m new shares to be issued to Angus. The 43.87m new shares equate to 2.1% of the enlarged share in issue.
We have updated our NAV based valuation model for UKOG for (i) increased interest in Horse Hill asset (ii) the £1m cash consideration and (iii) the increased share count, resulting from new shares to be issued . Our NAV/ share stands increased by 16% to 8.7p/ share (versus 7.5p prior).
Today’s acquisition of an additional interest in Horse Hill is consistent with UKOG’s management strategy of increasing its interest in its Weald basin assets. We support this strategy and believe the price paid for the beneficial 7.8% interest in Horse Hill is highly attractive and accretive to shareholder value.” says WH Ireland Analyst Brendan D’Souza
