UK Oil & Gas Sells Horse Hill Stake for £1m to Fund Energy Storage Growth
UK Oil & Gas PLC (AIM: UKOG) has agreed to sell its entire 85.635% interest in the Horse Hill oil field and the surrounding PEDL137 licence to Aquis-listed energy B PLC for £1 million in cash.
The transaction marks UKOG’s planned exit from the UK onshore oil and gas sector, allowing the company to focus on its strategic energy storage ambitions, including two UK salt cavern projects and a number of international opportunities currently under review.
Completion remains subject to customary regulatory approvals and shareholder approval from energy B, with a general meeting expected in early July.
Chief Executive Stephen Sanderson said the sale provides a timely opportunity to redirect management attention and capital towards higher-priority energy storage developments, while wishing energy B success in unlocking the remaining potential of the Horse Hill asset.
Under the agreement, energy B will acquire UKOG (137/246) Ltd, which holds a 35% working interest in Horse Hill and PEDL137, together with UKOG’s 77.9% stake in Horse Hill Developments Ltd (HHDL). That shareholding represents an additional 50.635% working interest, taking the total acquired interest to 85.635%.
The disposal comes after substantial impairments were recognised against the asset. As of 30 September 2025, UKOG carried its Horse Hill interests at just £55,360 following cumulative impairment charges of approximately £3.2 million.
Horse Hill also generated a total loss of £1.55 million during the 2025 financial year, including £571,158 of operational losses linked to prolonged production suspension and £981,000 of costs associated with shareholder and intercompany loans.
The £1 million sale price therefore represents a significant premium to the asset’s most recently reported carrying value and provides UKOG with fresh capital to pursue its transition towards energy storage and broader energy infrastructure opportunities.
Board Changes
David Lenigas has agreed to join the Board as Executive Chairman with immediate effect. Neil Ritson will remain as an Executive Director and will assume the role of CEO. Jonathan Colville will remain as a non-executive director of the Company.
Both Neil Ritson and David Lenigas have extensive experience in the Oil & Gas sector and in the Horse Hill project.
