Getty A nice slice of cake.
UKOG revealed in a regulatory announcement that it has bought a 20% interest in the UK onshore licence PEDL143 from Egdon Resources U.K. Limited.
The 91.8 square kilometres (35.5 square miles) PEDL143 licence is located to the immediate west of the Horse Hill-1 oil field which has 9,245 million barrels of oil in just 55 square miles covered by the Horse Hill licences (PEDL137 and PEDL246).
The Horse Hill-1 well is located within onshore exploration License PEDL137, on the northern side of the Weald Basin near Gatwick Airport.
UKOG intends to drill a total depth of approximately 4600 ft (1400 metres) true vertical depth to penetrate the Upper and Lower Portland Sandstone reservoir targets. It will later report back to tell investors if it has discovered more oil.
"The opportunity to increase our interests in the Weald Basin adjacent to Horse Hill and to participate in the drilling of Holmwood's potentially significant low to moderate risk prospective resources is both exciting and a logical growth step in the Company's core business area," said Stephen Sanderson, CEO at UKOG.
"The Company's interest in the Horse Hill-1 Portland oil discovery, along with our interest in the producing Portland Sandstone reservoir of the Brockham oil field, likely represent the best subsurface analogues for the Holmwood prospect. Consequently, we can utilise our key proprietary knowledge and experience of these analogues to the benefit and future success of the project."
On June 24, UKOG revealed that it made a pre-tax net loss of £383,000 ($602,327) for the six months ending March 31.This is an even bigger loss than the £290,000 ($456,070) it made in the same period a year earlier.
However, it mentioned that it would be looking to expand its interests in other oil fields and banks on the money it will make when it cashes in the oil it will recover from near Gatwick airport.
Two sets of independent analysis confirmed that there is a whole glut of oil underneath the ground near Gatwick Airport.