UKOG acquires 100% interest in Weald basin PEDL126 onshore license

LONDON -- UKOG has completed the acquisition from Magellan Petroleum of a 40% interest in the Weald basin onshore licence PEDL126, containing the Markwells Wood-1 Great Oolite oil discovery. UKOG's interest in PEDL126 is now 100%.

This acquisition from Magellan is the twenty-first asset transaction that UKOG has completed since 2013.  The Company has now acquired interests in four UK onshore producing fields - Horndean (10%), Avington (5%), Lidsey (4.2%) and Brockham (3.6%) - as well as interests in three oil discoveries at Markwells Wood-1 (100%), Horse Hill-1 (20.358%) and Baxters Copse-1 (50%).

UKOG is also the operator of the promising offshore Isle of Wight exploration licence, P1916 (77.5%), and has applied for the contiguous onshore Isle of Wight acreage in the UK's 14th Landward Licence Round.

PEDL126 (Markwells Wood) has an area of 11.2 square km, comprising blocks SU/71a and SU/81a, and is located in West Sussex and Hampshire in the western area of the Weald basin.

The Markwells Wood-1 discovery was drilled in 2011.  An extended well test program was carried out over a 6-month period from November 2011 to May 2012, producing 3,931 bbl. The peak flow rate over a 24-hr period was approximately 100 bopd.

UKOG's current interpretation of the Markwells Wood-1 well data and 2D seismic over the discovery and the neighboring producing Horndean oil field (in which UKOG has a 10% interest) shows that Markwells Wood probably represents the eastern extension of the Horndean field, sharing the same structural spill point and interpreted "oil down to" depth of 4,446 ft TVDss.  The Horndean field produced 2.12 MMbbl to end 2014.