LONDON: UK Oil & Gas PLC (AIM: UKOG) has agreed the sale of its 100%-owned subsidiary UKOG (GB) Limited to Servatec Holdings Limited for a cash consideration of £400,000. Servatec are the holding company of a widely utilised and respected UK onshore oil and gas sector well services and drilling group.
Completion is subject to the normal sector regulatory consents, according to a statement.
UKOG (GB) holds minority non-operated interests in two UK onshore petroleum licences, a 10% interest in PL211 and a 5% interest in PEDL070, containing the Horndean and Avington oil fields, respectively. Both licences are located in Hampshire. The book value of the subsidiary in the 2024 Interim Financial statements was £635,000. The profit attributable to the subsidiary in the 2023 Annual financial statements was £140,000.
Stephen Sanderson, the Company’s Chief Executive commented: “This divestment is fully in keeping with the Company’s stated transition away from hydrocarbons into the clean hydrogen storage and production sector, with the proceeds being utilised to further our subsidiary UK Energy Storage’s material salt cavern hydrogen storage projects in Dorset and Yorkshire. We wish Servatec well in their future stewardship of UKOG (GB)’s assets.”