Talks are going ahead for a takeover of the independent Wychwood Brewery at Witney.

Within five to six weeks, the new owners could be Refresh UK plc, a privately controlled brand owner and drinks agency company.

The future of the brewery, at the town's Eagle industrial estate, and the 20 employees who produce about 30,000 barrels of ale a year, have been guaranteed.

The separate Hobgoblin pub chain, set up as a sister company to the brewery in 1992, is to be sold off to the Balaclava pub company, based at Harwell.

Paul Adams, Wychwood finance director, said: "We are confidently expecting the deal to go ahead.

"We have been trying to refinance the business, especially on the pub side, since the withdrawal of 3i, a large venture capital company.

"The good news is that the brewery continues. For a micro-brewer we are one of the biggest in the country and our brand names will continue."

The brewery started from very small beginnings in 1983 under founders Patrick Glenny and Chris Moss, who died last year.

Since then it has produced a range of popular beers, such as Hobgoblin, Fiddler's Elbow, Goliath and Circle Master.

Last year, the brewery's turnover was £9m.

Refresh UK was formed in June 2000 by Rupert Thompson, former brand director for Carling and Oxfordshire's Morland's brewery.

He said: "Wychwood's Brewery is integral to the popularity and future growth of specialist craft-brewed beers. We are very excited about this opportunity."

Refresh does not produce beer, but among the brands it already markets are Manns brown ale and Ushers bitter.