Option Agreement to Farm into Licence P2264

RNS Number : 7260C

United Oil & Gas PLC

24 January 2018

 

                                                                                                                                                                   24 January, 2018

United Oil & Gas Plc

Option Agreement to Farm into Licence P2264

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 a no cost option agreement to farm into offshore Block 49/29c UK Licence P2264 which contains the Acle prospect ("Option Agreement"), jointly owned by Swift Exploration Limited ("Swift") (50 per cent.) and Stelinmatvic Industries Ltd ("Stelinmatvic") (50 per cent.). 

The Acle prospect is a clear 2.5 km2 four-way dip closure with further fault-bounded upside. Like most fields in the Southern North Sea, the reservoir is located in the Permian Rotliegendes formation and the Acle structure is located in close proximity to several significant producing gas fields including Gawain, Davy, Sean and Boyle. Acle is a low risk exploration prospect as a function of its four-way dip closure in a proven hydrocarbon fairway. As such, it has been ascribed a high chance of drilling success.

On exercise of this Option Agreement, United will sign a farm-in agreement with Swift and Stelinmatvic and will acquire 24 per cent interest in the licence, being 12 per cent from each of Swift and Stelinmatvic. For the combined 24 per cent interest, United will pay 30 per cent of the costs associated with the drilling of the first exploration well. In addition, United will pay £20,000 in cash to each partner on signing of the farm-in agreement.

The Option Agreement is exercisable upon a firm commitment being made to drill the well, and is valid until expiry of the licence, which will be no earlier than 30 June 2018.

United Oil & Gas Plc, Brian Larkin:

"We are very pleased to announce that we have secured a no cost option agreement with Swift Exploration Limited and Stelinmatvic Industries for a 24% working interest in Block 49/29c (licence P2264) which contains the Acle prospect and is located in the Southern North Sea.  This option agreement secures a material equity position in the acreage for our shareholders and we look forward to assisting the joint venture partners in their discussions with other potential licence partnersand the Oil and Gas Authority.

We've had an exciting start to the year, announcing two new deals along with our successful flow test on our Italian licence which is now on the road to production.  Our technical team, led by Jon Leather, have in a short period of time, delivered significant value for our shareholders. 

We continue to evaluate further opportunities to add to our portfolio and we will update shareholders as discussions develop further".

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]

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%

 

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