Horse Hill Disposal Marks Strategic Turning Point
UK Oil & Gas PLC (LSE:UKOG) has agreed to sell its entire 85.635% interest in the Horse Hill oil field and the associated PEDL137 licence to London Aquis-listed energy B PLC for £1 million in cash.
The transaction remains subject to regulatory approvals and shareholder approval from energy B. Once completed, the disposal will effectively mark UKOG’s exit from the UK onshore oil and gas sector as the company redirects its focus towards energy storage and international opportunities.
Sale Includes Majority Interest in Horse Hill Assets
The transaction covers UKOG (137/246) Ltd, which owns a 35% working interest in the Horse Hill field and the PEDL137 licence area.
It also includes UKOG’s 77.9% holding in Horse Hill Developments Ltd, representing an additional 50.635% working interest in the project. Together, these interests comprise the company’s entire economic exposure to the Horse Hill asset.
The disposal forms part of a broader strategic repositioning designed to concentrate resources on future growth areas outside conventional UK onshore hydrocarbon production.
Capital to Be Redirected Towards Energy Storage Projects
Management intends to deploy the proceeds from the sale into its developing portfolio of UK salt cavern energy storage projects, as well as a number of international energy opportunities currently under evaluation.
The company believes the move will enable greater focus on projects aligned with long-term energy infrastructure and transition-related themes while simplifying its operational portfolio.
Transaction Realises Value from Impaired Asset Base
As of 30 September 2025, UKOG carried its Horse Hill interests on its balance sheet at a value of £55,360 following a series of impairments.
The company reported an aggregate loss of approximately £1.55 million associated with the assets, meaning the sale crystallises value from a field that had become both impaired and loss-making.
Management views the transaction as an opportunity to release capital, reduce operational commitments and allocate resources to projects with stronger future growth potential.
More About UK Oil & Gas
UK Oil & Gas PLC is an AIM-listed energy company that has historically focused on onshore oil and gas exploration and production within the United Kingdom. The company became best known for its involvement in the Horse Hill field and associated licences in southern England.
In recent years, UKOG has been reshaping its strategy towards energy storage and international energy developments, with a particular focus on UK salt cavern storage projects and opportunities that support evolving energy infrastructure requirements.
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