United Oil&gas Share News (UOG)

LONDON (Alliance News) - United Oil & Gas PLC said Tuesday it has extended the option expiry date for its farm-out agreement with Corallian Energy Ltd.

Under the farm-out, announced mid-January, United is to take a 10% stake in each of the three licences in the southern UK held by a joint venture between Corallian and Corfe Energy Ltd through paying 13% of well cost on the Colter well, which is on the P1918 offshore licence.

An option was also provided for to acquire a further 10% stake on the same terms, which expired at the end of March. This has now been pushed back to the end of April, as United awaits the transfer of the original 10%, which it says is "imminent".

Chief Executive Brian Larkin said: "We look forward to the drilling of the Colter well. This license fits with our European strategy of building a portfolio driven by low risk, near term activity.

"We continue to look to build value and the extension of the option on this exciting play is important for our shareholders."

Shares were up 0.8% on Tuesday at 5.06 pence each.