Kerman & Co advises UK Oil & Gas Investments on the acquisition of 100% interest in Weald Basin

June 13, 2016

Kerman & Co advised UK Oil & Gas Investments PLC (AIM: UKOG) on its agreements with Celtique Energie and Magellan Petroleum to acquire a 100% interest in the Weald Basin licence PEDL234. The acquisitions more than double the UKOG’s net acreage holdings in the prime Kimmeridge Limestone Oil province.
For a total consideration of £3.5 million, the Company will obtain 100% ownership of the Licence via:
  • A Share Purchase Agreement with Celtique Energie Petroleum Limited to acquire Celtique Energie Weald Limited (“CEWL”) who own a direct 50% interest in the Licence and;
  • An Asset Transfer Agreement with Magellan Petroleum (UK) limited who own a 50% interest in the Licence.

Additionally, via a second Asset Transfer Agreement, the Company will be assigned Magellan’s 22.5% direct interest in offshore Isle of Wight licence P1916, taking UKOG’s interest to 100%.

The transactions are conditional upon the extension of the licence and the usual regulatory approvals being granted by the Secretary of State for Energy and Climate.

Kerman & Co’s Capital Markets team advised UK Oil & Gas Investments PLC on the transaction.