Gatwick oil well firm forced to clarify yet again
THE FIRM behind the Gatwick Airport oil find, UK Oil & Gas Investments (UKOG), has been directed by the Aim regulator to make a second clarification on its findings at the Horse Hill well in the south east of England.
UKOG released an update to the market yesterday in which it said “the company repeats it has not undertaken work outside of its licence areas sufficient to comment on the possible oil in place”.
The group, which is led by Aim veteran David Lenigas, sent shares in various junior market firms skyrocketing in early April when it announced the discovery of up to 100bn barrels of oil, the UK’s largest onshore oil find in the last 30 years.
However, just one week later, the market regulator forced the company to issue a clarification.
UKOG said its estimates “should not be considered as either contingent or prospective resources or reserves” and reiterated that further testing was required in order to establish the “commerciality” of the discovery.
Its shares, which had jumped by more than 300 per cent when the discovery was first announced, dropped by more than 20 per cent after the update was made.
A spokesman for Aim said yesterday that the regulator would not comment on specific firms.
However, he said: “Where companies are subjected to a lot of press commentary, we will have a chat with them and their advisers.”
These discussions will take into account whether press coverage of a particular firm could lead investors to form “an incorrect impression of the business”.
He added that in many cases companies would not be obliged by the regulator to make an update, although most will do so anyway.
UKOG declined to comment. Shares in the company fell by 7.41 per cent yesterday.