United Oil & Gas PLC Proposed Sale of UK Central North Sea Licences (6757G)
July 28 2021 - 2:00AM
UK Regulatory
TIDMUOG
RNS Number : 6757G
United Oil & Gas PLC
28 July 2021
United Oil & Gas PLC / Index: AIM / Epic: UOG / Sector: Oil
& Gas
28 July 2021
United Oil & Gas PLC
("United" or the "Company")
Proposed Sale of UK Central North Sea Licences
-- United agrees to sell UK Central North Sea Licences P2480 and
P2519 to Quattro Energy Limited for a Consideration of up to GBP3.2
million (c. US $4.4 million)
o Initial payment of GBP2 million at completion of the
transaction
o On Field Development Plan approval, a further consideration of
GBP1.2 million
United Oil & Gas Plc (AIM: "UOG"), the growing oil and gas
company with a portfolio of production, development, exploration
and appraisal assets, announces the signing of non-binding Heads of
Terms on an agreement to sell UK Central North Sea Licences P2480
and P2519 ("the Licences") to Quattro Energy Limited ("Quattro")
for a headline consideration of up to GBP3.2 million (c. US $4.4
million).
United was awarded Licence P2480, in the UK Oil and Gas
Authority ("OGA") 31 (st) Licencing Round in August 2019 and
Licence P2519 in the 32 (nd) Licencing Round, in December 2020.
United holds a 100% equity interest in each. Licence P2519 includes
the Maria Discovery in block 15/18. Low-cost but important data
analysis, carried out by the United team, has added significant
value to the Licences since award.
Quattro Energy is a new UK company incorporated in April 2021 by
an experienced North Sea focused management team. The acquisition
of United's CNS interests is a first step towards Quattro's
objective to build a portfolio of oil & gas appraisal,
development, and producing assets.
The transaction will result in an initial payment of GBP2
million (c. US $2.8 million) at completion. Subject to a Field
Development Plan being approved for block 15/18, an additional
uplift amount of GBP1.2 million (c. $1.7 million) will be paid to
United.
This deal, which is subject to completion of satisfactory due
diligence, definitive documentation and OGA approval, is expected
to complete by 30 September 2021.
The divestment of these Licences, following a strategic review
of the Company's portfolio, will see United exit activities in the
North Sea region. The transaction proceeds will provide financial
flexibility for the Company to grow its low-cost production
business in Egypt and the Greater Mediterranean area, complemented
with selected high impact exploration opportunities in the
Caribbean and Latin America.
Brian Larkin CEO, United Oil and Gas PLC:
"With this transaction we continue to demonstrate our ability to
actively manage our portfolio of assets to unlock significant
return in value for our shareholders in a short period of time. In
line with our stated strategy, the proceeds of this transaction
will further strengthen our balance sheet to support the growth of
the company".
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") as it forms
part of UK Domestic Law by virtue of the European Union
(Withdrawal) Act 2018.
**ENDS**
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
Christian Dennis +44 (0) 20 3137 1902
Murray (PR Advisor) +353 (0) 87 6909735
Joe Heron jheron@murrayconsultants.ie
Camarco (Financial PR/IR)
Billy Clegg +44 (0) 20 3757 4983
James Crothers uog@camarco.co.uk
Tessa Gough-Allen
Notes to Editors
United Oil & Gas is a high growth oil and gas company with a
portfolio of low-risk, cash generative production, development,
appraisal and exploration assets across Egypt, UK, Italy and a high
impact exploration licence in Jamaica.
The business is led by an experienced management team with a
strong track record of growing full cycle businesses, partnered
with established industry players and 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 www.uogplc.com
Quattro Energy is a new company co-founded by Neill Carson
(Executive Chairman), Jens Pace (CEO) and Brad Gunn (CFO)
incorporated in April 2021. Neil Carson is currently a Non
Executive Director at i3 Energy plc, having formerly been the CEO
of i3 Energy plc and President & COO of Ithaca Energy (UK)
Limited. Jens Pace was previously CEO of Petronor E&P and
African Petroleum Corp Ltd. Brad Gunn was previously CFO of Ithaca
Energy (UK) Limited.
The acquisition of UOG's CNS interests is a first step towards
Quattro's objective to build a portfolio of oil & gas
appraisal, development, and producing assets. Quattro are actively
progressing funding support for this and other transactions from
the capital markets anticipated to complete Q3 2021.
www.quattroenergy.co.uk
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END
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