Corallian farmout agreement

RNS Number : 9768B

United Oil & Gas PLC

16 January 2018

 

                                                                                                                                16 January 2018

United Oil & Gas Plc

Corallian farmout agreement

United Oil & Gas Plc ("UOG", "United" or the "Company"), the London Stock Exchange listed oil and gas exploration and development company, is pleased to announce an agreement to farm-in to the Corallian Energy Limited ("Corallian") interests in its southern UK oil and gas assets. 

United has entered into a farmout agreement with Corallian Energy Limited, a private UK oil and gas appraisal and exploration company, to acquire an initial 10 per cent. interest from Corallian in each of three licences held by a joint venture between Corallian (60%) as operator and Corfe Energy Limited ("Corfe") (40%) offshore and onshore southern UK ("Initial Farmed Interest"), by way of paying 13.33 per cent. of the costs associated with the Colter well, planned for Q2 2018.  In addition, an option has been granted, which expires at the end of March, under which United can exercise a right to purchase an additional 10 per cent. interest in these licences ("Additional Farmed Interest"), on the same terms as the Initial Farmed Interest.

Corallian and Corfe jointly hold equity in licence P1918, offshore southern UK, and onshore UK licences PEDL330 and PEDL345 (further details of which are set out in Appendix 1 below).  The P1918 licence, includes the Colter discovery, adjacent to the largest onshore oil field in Europe, Wytch Farm, which has produced in excess of 450 million barrels of oil.

An appraisal well on the Colter structure is planned to be drilled in Q2 2018 and will cost approximately £7millon gross. United estimate their share of this to be £933,100.  It is planned to drill this well up-dip of the Sherwood Sandstone discovery made by Well 98/11-3 in 1986. Although this new well will be drilled via an offshore jack-up, potential development is likely to be through the facilities at Wytch Farm via extended reach drilling.

Additionally, United and Corallian have established an Area of Mutual Interest ("AMI") for the area, enabling the partnership to identify and target further opportunities within the same play.

United Oil & Gas Plc, Brian Larkin:

"We are very pleased to announce this deal and AMI agreement with Corallian. The Colter prospect is the same play that has been so productive at Wytch Farm, and joins our existing licence at Waddocks Cross, PL090, in the United portfolio.

This, our second cluster of UK licences and fourth in total, gives United's shareholders access to a near-term, drill-ready target in a highly prospective region. We look forward to drilling of the well in Q2 2018.

We continue to evaluate further acquisitions and farm-in opportunities in order to grow our portfolio and deliver value for shareholders."

This announcement contains inside information for the purposes of Article 7 of Regulation (EU) 596/2014

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

United Oil & Gas Plc (Company)
Brian Larkin	[e-mail]
Optiva Securities Limited (Broker)
Christian Dennis	[phone]
Beaumont Cornish Limited (Financial Adviser)
Roland Cornish and Felicity Geidt	[phone]
Murray (PR Advisor)	[phone]
Joe Heron	[e-mail]

Appendix 1

The Licence

Licence No.	Licence Date	Current Licensees	Current Percentage Interest
P1918	14/06/2012	Corallian Energy Limited	60%
		Corfe Energy Limited	40%
PEDL330	15/09/2016	Corallian Energy Limited	60%
		Corfe Energy Limited	40%
PEDL345	15/09/2016	Corallian Energy Limited	60%
		Corfe Energy Limited	40%

Part II

The Farmed Interest

Party	Current Percentage Interest	Farmed Interest	Future Percentage Interest
Corallian Energy Limited	60%	10-20% to United	40-50%
United Oil & Gas plc	nil	10-20% from Corallian	10-20%

Editor's Note:

United Oil & Gas plc (UOG) is listed on the main market of the London Stock Exchange.  UOG was established to explore, appraise and develop low risk assets in Europe and North Africa and to develop higher risk, higher impact exploration projects in Latin America and Africa.

The following table outlines the Company's current licences:

Country	Licence	Operator	United Holding
Italy	Podere Gallina Licence	Po Valley Energy	20%
United Kingdom	Waddock Cross Field	Egdon Oil Plc	26.25%
United Kingdom	PL090 Exploration	Egdon Oil Plc	18.95%
United Kingdom	P1918*	Corallian	10%**
United Kingdom	PEDL 330	Corallian	10%**
United Kingdom	PEDL 345	Corallian	10%**
Jamaica	Walton-Morant	Tullow Oil plc	20%

*Offshore

** Option to acquire a further 10%

 

END

 

 

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