TIDMUOG
RNS Number : 0763I
United Oil & Gas PLC
10 August 2021
United Oil & Gas PLC / Index: AIM / Epic: UOG / Sector: Oil
& Gas
10(th) August 2021
United Oil & Gas PLC
("United" or the "Company")
Sale of UOG Italia Srl for EUR2.165 million
United Oil & Gas Plc (AIM: "UOG"), through its subsidiary,
UOG Holdings plc, is pleased to announce that, as part of the
Company's ongoing optimisation of its portfolio and capital
allocation strategy, it has signed a conditional sale and purchase
agreement with PXOG Marshall Limited, a subsidiary of Prospex
Energy PLC, for the sale of 100% of the share capital of UOG Italia
Srl for a consideration of EUR2.165 million in cash. The effective
date of the transaction is 1 January 2021.
Highlights:
-- United agrees to conditionally sell Italian asset to Prospex Energy PLC for EUR2.165 million
-- As per the terms of the deal, United will receive an
immediate deposit payment of EUR108,235, with the remainder of the
consideration payable on completion
-- The sale consideration is at a modest premium to the total
assets held by UOG Italia at 31 December 2020 and removes any
further development expenditure associated with the Selva
development
UOG Italia Srl holds a 20% non-operated interest in the Podere
Gallina licence, in the Po Valley region of Italy, which contains
the Selva gas development project. United acquired the interest in
the licence via a farm in agreement with the operator Po Valley
Energy Limited in July 2017.
Prospex Energy plc is an AIM listed European focused energy
company focused on natural gas opportunities and already holds a
17% interest in the Podere Gallina licence.
The terms of the sale will see an immediate deposit payment of
EUR108,235, with the remainder of the EUR2.165 million total
consideration and any working capital adjustments payable on
completion. The sale is conditional upon (1) receipt of approval of
the Italian Authorities to the change of control of UOG Italia Srl
and (2) Prospex completing a fundraising process. The transaction
is expected to complete in late 2021.
The divestment of UOG Italia Srl., following a review of
United's portfolio, and capital allocation policy, will see United
exit activities in Italy. Subject to completion, the transaction
will remove development capital expenditure associated with the
Selva development. The transaction proceeds, in addition to the
proceeds from the UK Central North Sea divestments, will provide
additional financial flexibility for the Company to drive the
growth of 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.
For the year ended 31 December 2020, UOG Italia Srl. reported a
pre-tax loss of EUR36,934 and had total assets of EUR2,061,620.
Brian Larkin CEO of United Oil and Gas PLC, commented:
" We are pleased to sign this sale and purchase agreement with
our joint venture partner on the licence, Prospex Energy. We wish
them, and all stakeholders of the Selva project, well during its
development.
We believe that now is the optimal time to focus our portfolio
on our low-cost production business in Egypt and high impact
exploration opportunities in the Caribbean and Latin America. The
proceeds of this transaction and those of the previously announced
North Sea asset divestments will further strengthen our balance
sheet to support this growth strategy."
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 and UK, 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
Prospex Energy PLC is an AIM quoted investment company focussed
on high impact onshore and shallow offshore European gas and power
opportunities. The Company acquires undervalued projects and then
applies low-cost re-evaluation techniques to identify and de-risk
prospects. Prospex currently holds a portfolio of three projects:
the Podere Gallina Permit in Italy where first gas at the Selva
field is targeted for early 2022; the El Romeral gas and power
project in Spain, which includes three producing wells that supply
gas to a 100% project-owned 8.1MW power plant; and the large scale
Tesorillo gas project in southern Spain, which has the potential to
hold gross un-risked Prospective Resources of 830 Bcf of gas (Best
Estimate), with upside in excess of 2 Tcf. The Company's strategy
is to rapidly scale up gas production in the short term to generate
internal revenues that can then be deployed to develop the asset
base and increase production further.
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