UK Oil & Gas Investments (UKOG) has announced that it had agreed with Celtique Energie Petroleum and Magellan Petroleum to acquire 100% ownership of the 300 sq km Weald Basin (PEDL234), in southern England, according to City A.M.

PEDL234, that was equally owned by Celtique and Magellan, will be purchased for £3.5m and will give UKOG another regulatory approved drilling opportunity in Weald Basin. Last year, the company has discovered a massive amount of oil at its Horse Hill site which is also located in Weald Basin. The company believed that there could be up to 110b barrels of oil in this area.

Proactive Investors cited UKOG’s Executive Chairman, Stephen Sanderson, pointing to the success of Horse Hill and described the new acquisition as an entirely logical step. “The transaction more than doubles our net acreage position and potential recoverable resource base in the most prospective part of the play, all at a very reasonable entry price. The transaction makes UKOG the leading player and acreage holder in Kimmeridge oil and a significant player in the UK onshore oil industry.”

According to Energy Voice, Sanderson also added that other advantages that this acquisition has introduced are, the possibility to appraise the conventional Godley bridge gas discovery – discovered some 30 years ago – and the opportunity to test the underlying Kimmeridge limestones through a single dual-purpose well.