United Oil & Gas PLC APA Signed - Conditional Sale of Maria Discovery (9036M)
January 17 2023 - 2:00AM
UK Regulatory
TIDMUOG
RNS Number : 9036M
United Oil & Gas PLC
17 January 2023
United Oil & Gas PLC / Index: AIM / Epic: UOG / Sector: Oil
& Gas
17 January 2023
United Oil and Gas plc
("United" or "the Company")
APA Signed - Conditional Sale of Maria Discovery
United Oil & Gas Plc (AIM: "UOG"), the full-cycle oil and
gas company with a portfolio of production, development,
exploration and appraisal assets is pleased to announce that it has
entered into a binding Asset Purchase Agreement ("APA") with
Quattro Energy Limited ("Quattro") to sell UK Central North Sea
Licence P2519 containing the Maria discovery in Block 15/18e ("the
Licence") for a maximum consideration including contingent bonus
payments of up to GBP5.7 million (c.US$6.95 million) (the
"Transaction") as set out below.
Consideration comprises:
- Initial cash payment of GBP2.45 million to United (c.US$3 million) at completion.
- An additional GBP1.0 million to be paid to United upon
approval of an FDP (expected late 2023) for Block 15/18e.
- Contingent bonus payments of up to GBP2.25 million upon
reaching gross production thresholds from the field of three, four
and five million barrels.
The completion of the APA is subject to a number of
pre-conditions including the North Sea Transition Authority
("NSTA") approval to the Licence acquisition and Quattro having
available an amount equal to the completion payment of GBP2.45
million in cash. It is anticipated that completion of the APA will
be within 90 days from this announcement.
The divestment of the Licence reflects United's strategy to
focus its new ventures programme on opportunities in the Greater
Mediterranean and North Africa whilst remaining opportunistic for
value accretive transactions outside of these core areas.
Following completion of this transaction, the Company will
consider options to use a portion of the proceeds received to fund
a limited share buyback programme and therefore intends to seek the
requisite shareholder approvals at this year's Annual General
Meeting to approve such a programme. The funds not used on the
buyback programme will further strengthen the Group's balance sheet
and support the growth strategy of the Group.
United was awarded Licence P2519, in the UK Oil and Gas
Authority ("OGA" now known as NSTA) 32(nd) Licencing Round in
December 2020. Licence P2519 includes the Maria Discovery in Block
15/18e. United holds a 100% equity interest and it has a carrying
value of c.GBP0.7million (c.US$0.85 million) as at 31 December 2022
(as per the Company's unaudited management accounts). The Licence
has an independently audited mid-case 2C gross contingent resource
estimate of 6.3 mmbbls and 23.3Bcf (10.2 mmboe). The Licence was
formerly subject to a disposal to Quattro which did not complete as
per the announcement on 3 March 2022.
Quattro is a UK company, incorporated in April 2021 with an
experienced North Sea focused management team, which as separately
announced today is entering into a binding agreement to be acquired
by Jesmond Capital Ltd ("Jesmond"), a Canadian company listed on
the Toronto Stock Exchange (TSXV JES.P). In conjunction with the
acquisition of Quattro by Jesmond and listing of the enlarged
entity on the TSXV, the parties will be conducting a financing
which is required by them to fund the completion of the acquisition
of the Licence.
United Chief Executive Officer, Brian Larkin commented:
"Active portfolio management, to realise value from our assets,
has always been a key part of United's strategy. We are pleased to
be signing the APA with Quattro, who have agreed a materially
higher maximum consideration than in 2021, reflecting the increased
value of the Licence following the work completed by our technical
team over the last 12 months. Whilst the Company explored options
whereby we participated directly in the future development of
Maria, we ultimately believe that monetising the Maria discovery at
this time provides us with a significant return from our investment
and gives us additional capital to continue to execute our ambition
to grow the business in our core focus areas in the Greater
Mediterranean and North Africa regions. We wish Quattro all the
very best for their new venture."
END
This announcement contains inside information for the purposes
of Article 7 of Regulation 2014/596/EU which is part of domestic UK
law pursuant to the Market Abuse (Amendment) (EU Exit) regulations
(SI 2019/310).
United Oil & Gas Plc (Company)
Brian Larkin, CEO brian.larkin@uogplc.com
Sharan Dhami, Head of IR & sharan.dhami@uogplc.com
ESG
Beaumont Cornish Limited (Nominated
Adviser)
Roland Cornish | Felicity Geidt +44 (0) 20 7628 3396
Tennyson Securities (Joint
Broker)
Peter Krens +44 (0) 20 7186 9030
Optiva Securities Limited (Joint
Broker)
Christian Dennis +44 (0) 20 3137 1902
Camarco (Financial PR)
Georgia Edmonds | Emily Hall +44 (0) 20 3757 4983 |
| Sam Morris uog@camarco.co.uk
Notes to Editors
United Oil & Gas is the full-cycle oil and gas company with
a portfolio of low-risk, cash generative production, development,
appraisal and exploration assets across Egypt, 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 .
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