UK Oil & Gas Investments (LON:UKOG) has struck a deal to acquire full ownership of the Markwells Wood oil field, in the Weald basin, onshore UK.
Markwells Wood hosts an oil discovery in the Great Oolite formation, which has previously flowed at around 100 barrels per day.
UKOG already owned 60% of the project and it has now agreed the acquisition of the other 40% from Magellan Petroleum for a nominal £1 fee.
The AIM quoted company believes Markwells Wood likely represents an extension of the Horndean field, which is operated by IGas.
"The acquisition represents an excellent opportunity to further consolidate the company's interest in the Markwells Wood oil discovery,” said chief executive Stephen Sanderson.
“UKOG's increased ownership will enable us to more fully exploit identified subsurface and infrastructure synergies shared with the adjacent producing Horndean oil field in which the company holds a 10% interest.
“Given that we view Markwells Wood to be the eastern extension of the Horndean oil accumulation, we look forward to working with IGas Energy Plc, operator of Horndean, to help realise value from the significant oil in place demonstrated by the discovery."