UK Oil & Gas Investments PLC intends to change its trading status under AIM rules from an Investing Company to that of an Operating Company. The change of status will be implemented following publication of an admission document and obtaining the requisite shareholder consent. The Company expects to publish the related status-change circular and admission document before the end of July 2018.
Under the new AIM Operating Company status, the Company will be able to take direct controlling operated interests in oil and gas exploration, appraisal and production assets and generally conduct its business with fewer restrictions than an Investing Company. Following the status change, UKOG's current investing policy will cease.
Stephen Sanderson, UKOG's Executive Chairman commented:
"The trading status change is an essential forward step in the Company's evolution. The new status will enable UKOG to take direct controlling and operated interests in existing assets and in any future acquisitions."
PEDL233 Licence Update
As previously reported in the Company's unaudited results for the six-month period ended 31 March 2018, we highlighted that the initial term on PEDL233 was set to expire on 30 June 2018. The Oil and Gas Authority has now confirmed the licence has now lapsed.
Both UKOG and the licence's operator, IGas Energy Enterprise Limited, concluded that the asset offered low commercial potential together with significant future drilling and production planning consent issues related to its location in the South Downs National Park. This asset ranked low in UKOG's investment portfolio. No drilling activities or material expenditure was allocated to this asset over the next 18 months.
Qualified Person's Statement
Stephen Sanderson, UKOG's Executive Chairman, who has over 38 years of relevant experience in the oil industry, has approved the information contained in this announcement. Mr Sanderson is a Fellow of the Geological Society of London and is an active member of the American Association of Petroleum Geologists.
