United Oil & Gas PLC Update on Crown Disposal Milestone Payment (5266H)
December 04 2020 - 2:00AM
UK Regulatory
TIDMUOG
RNS Number : 5266H
United Oil & Gas PLC
04 December 2020
United Oil & Gas PLC / Index: AIM / Epic: UOG / Sector: Oil
& Gas
4 December 2020
United Oil and Gas plc (United)
Update on Crown Disposal Milestone Payment
United Oil & Gas PLC (AIM: "UOG"), the growing oil and gas
company with a portfolio of production, development, exploration
and appraisal assets offers an update on the milestone payment from
Hibiscus Petroleum Berhad's indirect wholly-owned subsidiary,
Anasuria Hibiscus UK Limited ("Anasuria Hibiscus") for the purchase
of Licence P2366, Blocks 15/18d and 15/19b, which include the Crown
discovery.
On December 12(th) 2019, Anasuria Hibiscus completed the
acquisition of 100% interest in the named blocks from United and
Swift Exploration Limited ("Swift Exploration") for a total cash
consideration of up to US$5 million, to be paid based on a series
of planning milestones and production targets.
A payment of US$1m was received from Anasuria Hibiscus on
completion in December 2019. A payment of US$3m (US$2.85m to
United) is due to be paid within 7 days of the actual date of
approval of the Marigold Field Development Plan ("FDP"), which
includes the development of the Crown discovery as part of the
overall Marigold development ("FDP Approval"), by the UK's Oil and
Gas Authority ("OGA"). This approval was expected to be received by
the end of 2020.
Anasuria Hibiscus is currently in advanced stages of drafting
the final FDP and has been in pre-submission discussions with the
regulator to ensure the FDP meets their requirements. As a result
of delays, which are in large part due to the impact of Covid-19,
we have been informed by Anasuria Hibiscus that whilst the FDP will
be submitted on schedule by the end of December 2020 the project
final investment decision ("FID") which triggers the OGA approval
of the FDP is now expected to be around the end of March 2021. It
is clear that Crown remains an important and value accretive part
of the Marigold Development, and as a result of this delay and
following recent discussions with Anasuria Hibiscus the US$2.85m
payment is now expected to be in the second quarter of 2021.
In the event FDP Approval is not achieved, Anasuria Hibiscus
may, at its discretion, proceed with the US$3 million payment or
transfer License P2366 back to United and Swift Exploration at
nominal consideration without any further payment obligation.
An announcement on this matter will also be made by Hibiscus
Petroleum Berhad and can be accessed on
https://www.hibiscuspetroleum.com/
United Chief Executive Officer, Brian Larkin, commented:
"The short delay in this FDP Approval is understandable under
the current circumstances where project timelines are being
impacted by Covid-19 and does not have any impact on United's plans
to recommence drilling in Egypt which will be funded from operating
cashflow."
ENDS
The information contained within this announcement is deemed by
the Company to constitute inside information as stipulated under
the Market Abuse Regulations (EU) No. 596/2014 ("MAR").
United Oil & Gas Plc (Company)
Brian Larkin, CEO brian.larkin@uogplc.com
Beaumont Cornish Limited (Nominated
Adviser)
Roland Cornish and Felicity Geidt +44 (0) 20 7628 3396
Optiva Securities Limited (Joint
Broker)
Christian Dennis +44 (0) 20 3137 1902
Cenkos Securities Plc (Joint Broker)
Joe Nally (Corporate Broking) +44 (0) 20 7397 8900
Derrick Lee and Pete Lynch +44 (0) 131 220 6939
Murray (PR Advisor) +353 (0) 87 6909735
Joe Heron jheron@murrayconsultants.ie
Camarco (Financial PR/IR)
Billy Clegg +44 (0) 20 3757 4983
Georgia Edmonds uog@camarco.co.uk
James Crothers
Notes to Editors
United Oil & Gas is a high growth oil and gas company with a
portfolio of low-risk, cash generative production and development
assets across Egypt, UK, Italy and a high impact exploration
licence in Jamaica.
Led by an experienced management team with a strong track record
of growing full cycle businesses and partnered with established
industry players, the Company is well positioned to deliver future
growth through portfolio optimisation and targeted
acquisitions.
United Oil & Gas is listed on the AIM market of the London
Stock Exchange. For further information on United Oil and Gas
please visit https://www.uogplc.com/
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END
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