UK Oil and Gas to change AIM trading status
UK Oil and Gas Investments will change its trading status under AIM rules from an investing company to that of an operating company in order to take direct controlling operated interests in oil and gas exploration, appraisal and production assets.
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As a result of the status change, which remained subject to requisite shareholder consent, UKOG's current investing policy will cease but the firm will be able to "generally conduct its business" with fewer restrictions.
Stephen Sanderson, UKOG's executive chairman, said, "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."
UKOG also noted that the initial term on its PEDL233 licence had expired on 30 June.
Both UKOG and the licence's operator, iGas Energy, 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.
UKOG highlighted that the asset ranked low in its investment portfolio and that no drilling activities or material expenditure were allocated to PEDL233 over the next 18 months.
As of 1240 BST, UKOG shares had shot up 10.53% to 2.10p.