StockMarketWire.com - UK Oil & Gas said it had agreed to up its stake in the Horse Hill oil development south of London, also known as the 'Gatwick Gusher' by acquiring Magellan Petroleum Investment Holdings for £12m.

Magellan Petroleum was being purchased from Tellurian Investments, of which it was currently a subsidiary.

It held a 35% direct interest in the Horse Hill oil field and the surrounding PEDL137 and PEDL246 licences.

UK Oil & Gas said the deal would boost its net oil sales revenues, net reserves and recoverable resources by over 69% from its current 50.635% interest in Horse Hill to a material 85.635% net share.

'Crucially, the acquisition will also give the company full control over the forward Horse Hill drilling programme and production schedule, together with sole ownership of the Horse Hill oil field site lease,' it added.



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