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Highlights

  • UKOG sells 100%-owned UKOG (GB) to Servatec for GBX 400,000 cash consideration
  • UK Oil & Gas PLC offloads non-operated interests in two Hampshire oil fields
  • The company to allocate proceeds toward hydrogen storage projects in Dorset and Yorkshire

UK Oil & Gas PLC has agreed to divest its wholly owned subsidiary, UKOG (GB) Limited, to Servatec Holdings Limited for a cash consideration of GBX 400,000. The transaction is contingent upon receiving standard regulatory approvals from sector authorities.

UKOG (GB) currently holds minority, non-operated interests in two UK onshore petroleum licences. These include a 10% interest in licence PL211 and a 5% stake in PEDL070, which cover the Horndean and Avington oil fields in Hampshire, respectively. Both licences are managed by third-party operators.

In the company’s Interim Financial Statements for 2024, the book value of UKOG (GB) was recorded at GBX 635,000. For the financial year ended 2023, the subsidiary reported a profit of GBX 140,000. The agreed sale price of GBX 400,000 therefore reflects a discount to book value but allows UKOG to divest from legacy oil assets as it reorients its business strategy.

Servatec Holdings, the buyer, is the parent company of a group engaged in providing well services and drilling support within the UK’s onshore oil and gas industry. The acquisition adds to Servatec’s existing portfolio of operational support services and assets in the sector.

UK Oil & Gas has publicly stated its strategic intention to shift away from traditional hydrocarbon exploration and production. The company plans to focus on clean energy transition efforts, particularly in hydrogen storage and production. As part of this transition, proceeds from the UKOG (GB) sale will be directed toward the development of UKOG’s salt cavern hydrogen storage projects, which are being undertaken by its subsidiary, UK Energy Storage Ltd. These projects are located in Dorset and East Yorkshire.

Commenting on the divestment, Chief Executive Stephen Sanderson said the move aligns with the company's strategy to transition into the hydrogen energy sector. He also noted that UKOG wishes Servatec success in managing the acquired assets.

UK Oil & Gas PLC (UKOG) is an energy company listed on London’s AIM market. Historically engaged in oil and gas exploration and production within the United Kingdom, UKOG is now shifting focus to low-carbon energy technologies. Its project pipeline includes clean hydrogen storage infrastructure and other sustainable energy initiatives. The company’s legacy oil assets are in southern England, particularly in the Weald Basin region.