Solo Oil has completed the sale of its 30% share in an oil discovery licence for the Isle of Wight following approval from the Oil and Gas Authority.
As previously reported by Island Echo, UK Oil and Gas Plc entered into a binding heads of terms with Solo Oil Plc at the end of 2018 to acquire their 30% shareholding in the PEDL331 onshore Isle of Wight licence – the licence to drill for oil on a site near Merstone – for £350,000.
The purchase has been completed through 17,989,326 ordinary shares and £90,450 in cash.
Managing Director, Dan Maling, commented:
“We are pleased to announce the completion of the disposal of the non-core Isle of Wight asset. This transaction follows the Company’s ongoing monetisation strategy as we look to further strengthen the Company’s balance sheet and make sound returns on our historical and mature investments.”
The Arreton conventional oil discovery is said to contain 3 stacked Jurassic oil pools with an aggregate gross P50 oil in place of 127 million barrels.
Stephen Sanderson, UKOG’s Chief Executive, commented:
“We are delighted to acquire this further substantial share of the Arreton oil discovery, giving the Company a material 14.9 million barrels of net attributable discovered PEDL331 recoverable resources.
“The first Arreton appraisal well, Arreton-3, is now scheduled to be drilled, cored and tested in the first quarter of 2020, with the drilling of the larger look-alike Arreton South exploration prospect planned to follow after completion of Arreton-3 flow testing. We look forward to starting the journey towards realising the Isle of Wight Licence’s considerable conventional oil resource potential.”