UK Oil & Gas Investments Plc (AIM: UKOG) has completed the acquisition from Magellan Petroleum (UK) Ltd. of a 40% interest in the Weald Basin onshore license PEDL126 (Markwells Wood), containing the Markwells Wood-1 Great Oolite oil discovery. UKOG's interest in PEDL126 is now 100%.
This acquisition from Magellan is the 21 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 offshore Isle of Wight exploration license, P1916 (77.5%), and has applied for the contiguous onshore Isle of Wight acreage in the UK's 14th Landward License Round.
PEDL126 (Markwells Wood) has an area of 11.2 square kilometers, 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 six-month period from November 2011 to May 2012, producing 3,931 barrels of oil. The peak flow rate over a 24-hour period was 100 barrels of oil per day.