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(Alliance News) - Polo Resources on Monday noted that a subsidiary of its investee Hibiscus Petroleum Berhad has entered into an agreement to purchase two north sea blocks from United Oil & Gas PLC.
Earlier on Monday, United Oil & Gas said it signed a sales and purchase agreement for the disposal of North Sea blocks 15/18d and 15/19b to Anasuria Hibiscus UK Ltd for up to USD5 million.
Polo said Anasuria will first pay USD100,000 on the signing of the agreement, and then another USD900,000 on the deal's completion. Subject to further milestones relating to the approval of the Marigold Field Development Plan, Anasuria could pay up to USD3 million to United before the end of 2020.
Once the blocks are in production, there will be potential for further production payments of up to USD1 million by Anasuria to United.
Polo Resources shares were 4.9% lower at 2.99 pence each in London on Monday afternoon.
United Oil & Gas shares have been suspended since July as the planned acquisition of Rockhopper Exploration PLC's Egyptian unit is deemed a reverse takeover under London's AIM rules.
By Dayo Laniyan; dayolaniyan@alliancenews.com updated by Eric Cunha; ericcunha@alliancenews.com
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