United Oil & Gas PLC SPA Signed - UK Central North Sea Licences Sale (9084K)
September 07 2021 - 2:00AM
UK Regulatory
TIDMUOG
RNS Number : 9084K
United Oil & Gas PLC
07 September 2021
United Oil & Gas PLC / Index: AIM / Epic: UOG / Sector: Oil
& Gas
7 September 2021
United Oil and Gas Plc
( "United" or the "Company")
SPA Signed - Sale of UK Central North Sea Licences
United Oil & Gas Plc (AIM: "UOG"), the growing oil and gas
company with a portfolio of production, development, exploration
and appraisal assets, is pleased to announce that, further to the
signing of non-binding Heads of Terms as previously announced on
the 28 July 2021, it has now entered into a binding sale and
purchase agreement ("SPA") with Quattro Energy Limited ("Quattro")
to sell UK Central North Sea Licences P2480 and P2519 ("the
Licences") for a headline consideration of up to GBP3.2 million (c.
US $4.4 million) (the "Transaction").
The Transaction will result in an initial payment of GBP2
million to United (c. US $2.8 million) in cash at completion.
Subject to a Field Development Plan being approved for block
15/18e, an additional uplift amount of GBP1.2 million will be paid
to United.
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 15/18e.
Quattro Energy is a new UK company incorporated in April 2021 by
an experienced North Sea focused management team. The acquisition
of United's Central North Sea interests is a first step towards
Quattro's objective to build a portfolio of oil & gas
appraisal, development, and producing assets.
The completion of the SPA is conditional on OGA approval. It is
anticipated that completion of the SPA will be in Q4 2021. The Long
stop date for satisfaction is 6 December 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.
United's Chief Executive Officer, Brian Larkin commented:
"The sale of United's Licenses in the North Sea demonstrates our
commitment to portfolio optimisation, which forms a key part of the
Group's strategy. 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."
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.
United Oil & Gas Plc (Company)
Brian Larkin, CEO brian.larkin@uogplc.com
Sharan Dhami, Head of IR & ESG sharan.dhami@uogplc.com
Beaumont Cornish Limited (Nominated
Adviser)
Roland Cornish and Felicity Geidt +44 (0) 20 7628 3396
Optiva Securities Limited (Broker)
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. Neill 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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