Shares in UK Oil & Gas plc (LON:UKOG) continued their rebound on Thursday morning following the confirmation of the company’s acquistion of a further interest in Horsehill.

UK Oil & Gas confirmed on Wednesday they had secured a further 22% stake in Horse Hill Developments Ltd for a total consideration of £6.6m.

Horse Hill Developments Ltd has the largest working interest in the Horse Hill block, home to one of the UK’s largest onshore oil finds in years, know as the ‘Gatwick Gusher’.

UK Oil & Gas now has a 71.9% stake in Horse Hill Developments equaling a 46.7% working interest in the licence to explore the prospect.

The remaining working interest is owned Magellan Petroleum after a consolidation of stakes held by a consortium of oil companies and investment vehicles including Solo Oil and Regency Mines.

As part of the deal between Solo Oil and UKOG, Solo Oil obtained a 4.2% stake in UKOG.

Following the completion of the deal, UKOG shares have rebounded back above 2p having suffered a 25% retreat in the share price from recent highs.

UKOG now awaits further results from ongoing flow tests to judge the viability of the prospect.

The Horse Hill discovery is one of few recent oil discoveries that are dispelling the notion that the British oil and gas industry was in its twilight years.

One such project is the West of Shetland Block operated by Hurricane Energy who are exploring a prospect in the North Sea thought to hold as much as 5,274 million barrels of oil equivalent.