United Oil & Gas to Raise $6.25 Million via Placing to Fund Rockhopper Egypt Buy
December 09 2019 - 3:29AM
Dow Jones News
By Ian Walker
United Oil & Gas PLC (UOG.LN) said Monday that it will raise
$6.25 million to part-fund the previously announced acquisition of
Rockhopper Egypt Pty Ltd. from Rockhopper Exploration PLC
(RKH.LN).
The energy company said it will issue 159.04 million new
ordinary shares at 3 pence each, a 26% discount to its closing
share price of 4.05 pence on July 22, the day before the shares
were suspended from trading.
United Oil announced on July 23 that it planned to buy
Rockhopper's Egyptian business for $16 million in a reverse
takeover, with funding provided by integrated energy giant BP PLC
(BP.LN). BP has provided up to $8 million and United Oil is issuing
114.5 million new ordinary shares worth $4.5 million to Rockhopper
Exploration.
It said at the time that the transformational acquisition of
Rockhopper Egypt includes the 22% nonoperated position of the Abu
Sennan concession in Egypt.
United Oil will gain 1,100 barrels of oil equivalent a day in
low-cost production, as well as 2.6 million barrels in proved and
probable reserves.
Trading in United Oil shares is due to be restored at 0800 GMT
on Monday.
Write to Ian Walker at ian.walker@wsj.com
(END) Dow Jones Newswires
December 09, 2019 03:14 ET (08:14 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
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