Industry

Another oil company sells stake in Horse Hill

Horse Hill oil site blockaded by protesters

Protest outside the Horse Hill site in Surrey, 20 August 2018. Photo: RodHarbinson.com

Solo Oil has announced it is selling its direct interest in the Horse Hill oil exploration site in Surrey.

In a statement, Solo said this would free the company from future direct operational spending at the site nearly Horley where flow testing is currently underway.

Earlier this month, two other companies disposed of their Horse Hill interests.

All three have sold their stakes in the operating company, Horse Hill Developments Ltd (HHDL), to UK Oil & Gas plc (UKOG), the largest single investor at Horse Hill.

The site saw a protest last week at which 10 people were reportedly arrested. A ruling on an injunction, sought by UKOG against protests at Horse Hill and another oil site, is expected on Monday morning (3 September 2018).

UKOG said today it had agreed to acquire Solo’s entire 15% interest in HHDL for £4.5m. The sum would be met through the issue of 234+m UKOG shares. This would give Solo 4.2% of the share capital in UKOG.

On competition of the deal, UKOG would hold a 71.9% interest in HHDL. HHDL has a 65% interest in the two local exploration licences, PEDL137 and PEDL246.

Solo’s Managing Director, Dan Maling, said:

“The Board has seized the opportunity to monetise its investment in HHDL and is pleased with the return we have made on our investment. The transaction enables a more liquid balance sheet and frees Solo from future direct operational expenditure at Horse Hill, but ensures we retain the exposure to the exciting upside potential of the projects within UKOG’s diverse portfolio. Importantly, we will retain the option to monetise our shares in UKOG at the appropriate time.”

UKOG executive chairman, Stephen Sanderson, said:

“This further strategic acquisition firmly cements UKOG as the dominant player in the Horse Hill Portland and Kimmeridge oil discoveries and Licences. UKOG’s three recent HHDL acquisitions provide a valuable controlling interest and exemplify the rationale behind our recent change of AIM status to an operating company. With the positive Portland test results to date, UKOG, supported by its remaining three coventurers, can now steer the way towards permanent HH oil production in 2019.”

ON 20 August 2018, UKOG announced it was acquiring the combined 7% shareholding of Gunsynd PLC and Primorus Investments PLC in HHDL for £1.925m. £425,000 of that deal was to paid in cash and the remainder through the issue of 84.7m UKOG shares.

At the time of writing (12.44pm) UKOG shares were down 1.03% at 2.4p.

15 replies »

    • SOLO have taken shares in UKOG in lieu of cash. I realise it may be tricky for you to comprehend, or it simply doesn’t align with your vendetta, but they are far from “getting out” or “running away”….quite the opposite in fact.

  1. If they were getting out, or running away, the deal would have been in cash!

    So, Solo has over 200m shares in UKOG. And what happens if the share price returns to levels of 11p??

    Probably too difficult for DA maths., but I suspect most can do the sums.

    Good deal all round, making the development at HH more straight forward at the same time.

    No wonder some get so easily excited-it’s confusion.

  2. Solo can see this is a dud. They are clearly in cahoots with UKOG to dupe investors to overvalue the shares, investors who haven’t the knowledge or diligence to know this is a dud. And it only takes one regulator to start flexing some muscle or a political change and the whole house of cards comes tumbling down. Onshore oil and gas is unpopular and increasingly unviable. The government are facing so much flack from their own supporters even that the game will be up sooner rather than later. Tick, tick…

  3. Oh absolutely, Ian!

    “Unpopular” no, it isn’t, apart from a decreasing minority .

    “Increasingly unviable” no, it isn’t. Checked out your energy bills recently, or the pump prices down the garage?

    “Investors who haven’t the knowledge or the diligence”

    The Remainer argument-they are just too stupid. That’s really going to move opinion!

    Obviously not as bright as the reported 10 arrested shortly before the injunction decision, whilst being in the wrong place according to their posters!

  4. Oh dear… this website is now allowing posters to suggest companies are duping investors. Screenshot taken and sent to Solo, ukog and the fca…

    Squeaky bum time for Ian conlan.

    If you’re gonna do it Ian, be like Jono and cowardly hide behind multiple twitter and lse accounts. It’s not much of a life though.

    Once onshore is pumping will Jono’s life be even more meaningless?

  5. I really don’t understand why many of those that support fracking have to make their point in such a personal way, it actually weakens not strengthens their case. It is not witty, it is unpleasant and unnecessary.

    • KatT

      This discussion is more of a share bulletin board discussion rather than the rights or wrongs of Hydrocarbon extraction, be it onshore, offshore, abroad or fracked ( fracked here or not here ).

      Bulletin boards are quite spicey in their views and opinions, with no quarter given either way ( see LSE ).

      Hence the reaction to the various comments, some of which look very similar to bulletin board chatter.

    • Kat. I don’t support fracking but when you have people blocking lorries and members of the public from their freedom to go about their personal or professional business it’s pretty personal.

      How do you know that the lorry driver last week isn’t a carer for a relative and didn’t get home in time? How do you know the cars that were blocked didn’t contain parents collecting children?

      The whole purpose of your type is to disrupt innocent peoples’ personal lives.

      You should have an objective look and you’ll realise it’s shameful

  6. I really don’t understand why you can not do even the smallest piece of research KatT and discover that no fracking is planned in the Weald.

    When you bother to conduct your comments in a way which at least embraces some reality, you may find the debate from those who disagree with you will improve. Just because we have a different viewpoint we are not ignorant, neither are we saints. If people keep posting anti themes that have no basis in reality it is not surprising some lose patience. Surely, something factual to the UK could be found to hang a grievance around?

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