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United Oil & Gas PLC - oil and gas explorer - Offers an update on the milestone payment from Hibiscus Petroleum Berhad's indirect wholly-owned subsidiary, Anasuria Hibiscus UK Ltd for the purchase of Licence P2366, Blocks 15/18d and 15/19b, which include the Crown discovery. A payment of USD1 million was received from Anasuria Hibiscus on completion in December 2019. Payment of USD3 million is due to be paid within 7 days of the actual date of approval of the Marigold Field Development Plan, which includes the development of the Crown discovery as part of the overall Marigold development which was expected to be received by the end of 2020.
Anasuria Hibiscus currently in advanced stages of drafting the final FDP and has been in pre-submission discussions with the regulator to ensure the FDP meets requirements. As a result of delays, which are in large part due to the impact of Covid-19, UOG has been informed by Anasuria Hibiscus that whilst the FDP will be submitted on schedule by the end of December, the project final investment decision which triggers the Oil and Gas Authority's approval of the FDP is now expected to be around the end of March 2021. As a result of delay, USD2.85 million payment is now expected to be in the second quarter of 2021.
Chief Executive Officer Brian Larkin, commented: "The short delay in this FDP Approval is understandable under the current circumstances where project timelines are being impacted by Covid-19 and does not have any impact on United's plans to recommence drilling in Egypt which will be funded from operating cashflow."
Current stock price: 2.90 pence
Year-to-date change: down 19%
By Arvind Bhunjun; arvindbhunjun@alliancenews.com
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