United Oil & Gas PLC Corallian farmout agreement (9768B)

TIDMUOG

RNS Number : 9768B

United Oil & Gas PLC

16 January 2018

United Oil & Gas Plc

Corallian farmout agreement

United Oil & Gas Plc ("UOG", "United" or the "Company"), the London Stock Exchange listed oil and gas exploration and development company, is pleased to announce an agreement to farm-in to the Corallian Energy Limited ("Corallian") interests in its southern UK oil and gas assets.

United has entered into a farmout agreement with Corallian Energy Limited, a private UK oil and gas appraisal and exploration company, to acquire an initial 10 per cent. interest from Corallian in each of three licences held by a joint venture between Corallian (60%) as operator and Corfe Energy Limited ("Corfe") (40%) offshore and onshore southern UK ("Initial Farmed Interest"), by way of paying 13.33 per cent. of the costs associated with the Colter well, planned for Q2 2018. In addition, an option has been granted, which expires at the end of March, under which United can exercise a right to purchase an additional 10 per cent. interest in these licences ("Additional Farmed Interest"), on the same terms as the Initial Farmed Interest.

Corallian and Corfe jointly hold equity in licence P1918, offshore southern UK, and onshore UK licences PEDL330 and PEDL345 (further details of which are set out in Appendix 1 below). The P1918 licence, includes the Colter discovery, adjacent to the largest onshore oil field in Europe, Wytch Farm, which has produced in excess of 450 million barrels of oil.

An appraisal well on the Colter structure is planned to be drilled in Q2 2018 and will cost approximately GBP7millon gross. United estimate their share of this to be GBP933,100. It is planned to drill this well up-dip of the Sherwood Sandstone discovery made by Well 98/11-3 in 1986. Although this new well will be drilled via an offshore jack-up, potential development is likely to be through the facilities at Wytch Farm via extended reach drilling.

Additionally, United and Corallian have established an Area of Mutual Interest ("AMI") for the area, enabling the partnership to identify and target further opportunities within the same play.

United Oil & Gas Plc, Brian Larkin:

"We are very pleased to announce this deal and AMI agreement with Corallian. The Colter prospect is the same play that has been so productive at Wytch Farm, and joins our existing licence at Waddocks Cross, PL090, in the United portfolio.

This, our second cluster of UK licences and fourth in total, gives United's shareholders access to a near-term, drill-ready target in a highly prospective region. We look forward to drilling of the well in Q2 2018.

We continue to evaluate further acquisitions and farm-in opportunities in order to grow our portfolio and deliver value for shareholders."

This announcement contains inside information for the purposes of Article 7 of Regulation (EU) 596/2014

For more information please visit the Company's website at www.uogplc.com or contact:

 
 United Oil & Gas Plc (Company) 
=====================================  ================================ 
 Brian Larkin                           brian.larkin@unitedoilandgas.eu 
=====================================  ================================ 
 
 Optiva Securities Limited (Broker) 
=====================================  ================================ 
                                        +44 (0) 20 3137 
 Christian Dennis                        1902 
=====================================  ================================ 
 
 Beaumont Cornish Limited (Financial 
  Adviser) 
=====================================  ================================ 
 Roland Cornish and Felicity            +44 (0) 20 7628 
  Geidt                                  3396 
=====================================  ================================ 
 
 Murray (PR Advisor)                     +353 (0) 87 6909735 
=====================================  ================================ 
 Joe Heron                              jheron@murrayconsultants.ie 
=====================================  ================================

Appendix 1

The Licence

 
 Licence      Licence       Current Licensees       Current 
  No.           Date                               Percentage 
                                                    Interest 
---------  ------------  ----------------------  ------------ 
                          Corallian Energy 
 P1918      14/06/2012     Limited                    60% 
---------  ------------  ----------------------  ------------ 
   Corfe Energy Limited                               40% 
  ---------------------------------------------  ------------ 
                          Corallian Energy 
 PEDL330    15/09/2016     Limited                    60% 
---------  ------------  ----------------------  ------------ 
   Corfe Energy Limited                               40% 
  ---------------------------------------------  ------------ 
                          Corallian Energy 
 PEDL345    15/09/2016     Limited                    60% 
---------  ------------  ----------------------  ------------ 
   Corfe Energy Limited                               40% 
  ---------------------------------------------  ------------

Part II

The Farmed Interest

 
 Party                 Current     Farmed Interest      Future 
                      Percentage                       Percentage 
                       Interest                         Interest 
------------------  ------------  -----------------  ------------ 
 Corallian Energy 
  Limited                60%       10-20% to United     40-50% 
------------------  ------------  -----------------  ------------ 
 United Oil & Gas                    10-20% from 
  plc                    nil           Corallian        10-20% 
------------------  ------------  -----------------  ------------

Editor's Note:

United Oil & Gas plc (UOG) is listed on the main market of the London Stock Exchange. UOG was established to explore, appraise and develop low risk assets in Europe and North Africa and to develop higher risk, higher impact exploration projects in Latin America and Africa.

The following table outlines the Company's current licences:

 
 Country           Licence              Operator            United Holding 
----------------  -------------------  ------------------  --------------- 
                   Podere Gallina 
 Italy              Licence             Po Valley Energy    20% 
----------------  -------------------  ------------------  --------------- 
                   Waddock Cross 
 United Kingdom     Field               Egdon Oil Plc       26.25% 
----------------  -------------------  ------------------  --------------- 
 United Kingdom    PL090 Exploration    Egdon Oil Plc       18.95% 
----------------  -------------------  ------------------  --------------- 
 United Kingdom    P1918*               Corallian           10%** 
----------------  -------------------  ------------------  --------------- 
 United Kingdom    PEDL 330             Corallian           10%** 
----------------  -------------------  ------------------  --------------- 
 United Kingdom    PEDL 345             Corallian           10%** 
----------------  -------------------  ------------------  --------------- 
                                        Tullow Oil 
 Jamaica           Walton-Morant         plc                20% 
----------------  -------------------  ------------------  ---------------

*Offshore

** Option to acquire a further 10%

This information is provided by RNS

The company news service from the London Stock Exchange

END

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