UK Oil & Gas plc (UKOG) announced this morning that it had sold one of its subsidiary companies.

A statement to the stock market said UKOG GB Limited had been sold for £400,000 to Servatec, described as the holding company of a well services group in the oil and gas sector.

UKOG (GB) Limited has a 10% interest in the licence PL211, containing the producing Horndean oilfield, in Hampshire. It also has 5% stake in PEDL070, containing the Avington oilfield, in the South Downs National Park, also in Hampshire.  

Oil production from the Horndean field was the main onshore source of onshore hydrocarbon income for UKOG.

The company’s other producing field, at Horse Hill in Surrey, has not extracted oil since November 2024. This followed a landmark climate ruling by the Supreme Court which quashed the Horse Hill planning permission.

Share trading in UKOG were suspended in March when the company failed to publish its annual accounts on time. The release of interim accounts were also delayed.

UKOG’s chief executive, Stephen Sanderson, said this morning:

“This divestment is fully in keeping with the Company’s stated transition away from hydrocarbons into the clean hydrogen storage and production sector, with the proceeds being utilised to further our subsidiary UK Energy Storage’s material salt cavern hydrogen storage projects in Dorset and Yorkshire. We wish Servatec well in their future stewardship of UKOG (GB)’s assets.”

The Horndean and Avington oilfields are both operated by Star Energy.

UKOG announced in July 2023 that oil production would resume at Avington, after a break of more than five years. But since then, there has been no production from the field.

UKOG’s most recent accounts listed eight other subsidiaries: UKOG (234) Limited, Horse Hill Developments Limited, UKOG (137/246) Ltd, UKOG (137/246) Holdings Ltd, UKOG (Turkey) Ltd, UKOG Energy Storage Ltd, UK Oil & Gas Investments Limited and UK Geothermal Limited.

Servatec is based in near Newark in Nottinghamshire and has links to the drilling company, PW Well Services Limited.