The largest investor in the Horse Hill oil well near Gatwick is seeking to change its company status.
UK Oil and Gas Investments PLC said this morning it intended to move from an investing to an operating company.
In a statement, UKOG said the change would allow it to take direct controlling operated interests in oil and gas exploration, appraisal and production. There would also be fewer restrictions than on an investing company, UKOG said.
Stephen Sanderson, UKOG’s Executive Chairman described the new status as “an essential forward step in the company’s evolution”.
He said it would also allow UKOG to control and operate any future acquisitions.
UKOG is listed on the AIM junior stock market. The company said it would publish a new admission document and seek the required consent from shareholders.
Currently, UKOG interests in oil sites across southern England are operated through wholly-owned subsidiaries or partnership companies. The company has a 42% stake in Horse Hill Developments Ltd, the operator of the Horse Hill oil exploration site.
At UKOG’s Broadford Bridge site in West Sussex is operated by its subsidiary, Kimmeridge Oil and Gas. The operator at the Markwells Wood site, also in West Sussex, is another subsidiary, UKOG (GB) Limited.
Last week, UKOG announced it had raised £2m via a placing of 100 million new shares.
UKOG shares rose on today’s news. They reached 2.25p but fell back and at the time writing stood at 2.05p, up nearly 8% on the opening value.