(Alliance News) - United Oil & Gas PLC on Wednesday said it has terminated its asset purchase agreement with Quattro Energy Ltd.
UOG is a London-based oil and gas company focused on Egypt, the UK and Jamaica. Quattro is also a London-based oil and gas company.
The deal had agreed the conditional sale of UOG's North Sea licence P2519, which contains the Maria discovery in block 15/18.
The long stop for the date had been extended to October 27, but Quattro had not satisfied certain conditions by that point, and the parties did not agree to another extension. Quattro had not been able to raise the necessary funds by that date, which reflects "current regulatory and fiscal challenges impacting the UK North Sea undermining investor confidence in the progression of potential developments in this sector", UOG said.
Additionally, UOG said it will not apply to move into the next phase of the licence, after it has "exhausted all other available avenues to progress this opportunity" ahead of the licence expiry on November 30.
UOG Chief Executive Officer Brian Larkin said it was a "disappointing outcome for both parties", adding "our focus remains on progressing the farm out of Jamaica and the upcoming drilling activities in Egypt, including the drilling of the ASD-S-1X exploration well later this year."
Shares in UOG fell 5.1% at 0.93 pence each in London on Wednesday morning.
By Sabrina Penty, Alliance News reporter
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United Oil&gas (UOG)