AIM- listed UK Oil & Gas (UKOG) has announced that the Company has agreed the sale of its entire 85.635% interest in the Horse Hill field ('HH') and its surrounding PEDL137 licence to energy B PLC ('energy B'), an energy company listed on the London Aquis exchange, for a cash consideration of £1,000,000. The Company intends to use the consideration to progress its two material UK salt cavern energy storage projects and new international energy opportunities under active review.
Completion of the sale is conditional upon the normal UK petroleum sector regulatory consent and energy B gaining shareholder approval for the transaction at a general meeting scheduled to be held in early July.
Stephen Sanderson, the Company's Chief Executive commented:
'Whilst the Company recognises that potentially material resources likely remain within HH, this divestment presents a timely and attractive opportunity to complete UKOG's exit from the UK onshore oil & gas sector, freeing our team and resources to focus upon our two material UK salt cavern energy storage projects and new international energy opportunities under active review. We wish energy B well in its future stewardship of Horse Hill and in realising its ambition to deliver the field's full remaining potential.'
Further Details
In return for the cash consideration, energy B will acquire the following UKOG assets:
- UKOG (137/246) Ltd, which holds a 35% working interest in HH and PEDL137 and;
- UKOG's 77.9% shareholding in Horse Hill Developments Ltd ("HHDL"), which holds a 65% operated interest in HH and PEDL137. The Company's HHDL shareholding equates to a 50.635% working interest in HH and PEDL137.
As of year-end 30th September 2025, the Company carried an aggregate value of £55,360 for its HH interests, reflecting the significant £3.2 million cumulative impairment charges recognised in its most recent accounts published on 1st October 2025 and 5th May 2026. At year-end, 30th September 2025, the HH assets reported an aggregate loss of £1,552,158 comprising operational losses of £571,158 arising from the field's production suspension over the majority of the financial year (see RNS of May 6th 2026), and £981,000 of costs and charges related to HHDL shareholder and intercompany loans.
See also, energy B announcement: energy B plc announces Horse Hill Oil Field Acquisition Agreement, £1.2m Placing, subscription and Director Changes
Source: UKOG
