Completion of Sale of North Sea Blocks

RNS Number : 6868W

United Oil & Gas PLC

12 December 2019

 

United Oil & Gas PLC / Index: AIM / Epic: UOG / Sector: Oil & Gas

12 December 2019

United Oil & Gas PLC ('United' or 'UOG' or 'the Company')

Completion of Sale of North Sea Blocks 15/18d and 15/19b (Licence P2366)

United Oil & Gas PLC (AIM: "UOG"), the AIM traded oil and gas exploration and development company, is pleased to announce the completion of the sale of the North Sea Blocks 15/18d and 15/19b (Licence P2366) to Anasuria Hibiscus UK Limited ('Hibiscus') for a headline consideration of up to US$5million (the 'Sale').  

The completion of the Sale has triggered a payment of US$900,000 to the sellers, United and its minority partner Swift Exploration Ltd. (US$855,000 net to United).  This is in addition to US$100,000 (US$95,000 net to United) previously paid on signing of the Sale and Purchase Agreement (see announcement of 7 October 2019).  Up to a further US$3 million will be paid by Hibiscus (US$2.85m net to United) before the end of 2020, subject to certain key milestones being achieved.  In the event that these milestones are not achieved the licence will revert to United and Swift Exploration Limited, if Hibiscus exercises its option not to pay the US $3 million and the US$1 million will not be repaid. In addition, up to US$ 1 million will be paid through an overriding royalty scheme once the Crown discovery has commenced production.

Brian Larkin CEO, United Oil and Gas PLC:

"The completion of this divestment is further proof of United's ability to manage our portfolio in a way which delivers tangible returns for shareholders. We have, in a short space of time, added significant value to Licence P2366 and realised a significant return. With activity across our portfolio of multi-stage assets over the next twelve months, including the completion of the Rockhopper Egypt acquisition and the commencement of production at the Selva field in Italy, the momentum behind the business is set to continue and I look forward to providing further updates on our progress".

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").

ENDS

For further information please visit the Company's website at www.uogplc.com or contact:

United Oil & Gas Plc (Company)
Brian Larkin, CEO	[e-mail]
Beaumont Cornish Limited (Nominated Adviser)
Roland Cornish and Felicity Geidt	[phone]
Optiva Securities Limited (Joint Broker)
Christian Dennis	[phone]
Cenkos Securities Plc (Joint Broker)
Joe Nally (Corporate Broking) Derrick Lee and Pete Lynch	[phone] [phone]
Murray (PR Advisor)	[phone]
Joe Heron	[e-mail]
St Brides Partners (Financial PR/IR)
Frank Buhagiar and Priit Piip	[phone]

Notes to Editors

United Oil & Gas plc (UOG) is an AIM-traded company.  United was established to explore, appraise and develop low risk assets in Europe and to develop higher risk, higher impact exploration projects in the Caribbean, Latin America and Africa.

 

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