Last checked at 7 Sep 2021 07:00
United Oil & Gas PLC / Index: AIM / Epic: UOG / Sector: Oil & Gas
7 September 2021
United Oil and Gas Plc
( "United" or the "Company")
SPA Signed - Sale of UK Central North Sea Licences
United Oil & Gas Plc (AIM: "UOG"), the growing oil and gas company with a portfolio of production, development, exploration and appraisal assets, is pleased to announce that, further to the signing of non-binding Heads of Terms as previously announced on the 28 July 2021, it has now entered into a binding sale and purchase agreement ("SPA") with Quattro Energy Limited ("Quattro") to sell UK Central North Sea Licences P2480 and P2519 ("the Licences") for a headline consideration of up to £3.2 million (c. US $4.4 million) (the "Transaction").
The Transaction will result in an initial payment of £2 million to United (c. US $2.8 million) in cash at completion. Subject to a Field Development Plan being approved for block 15/18e, an additional uplift amount of £1.2 million will be paid to United.
United was awarded Licence P2480, in the UK Oil and Gas Authority ("OGA") 31st Licencing Round in August 2019 and Licence P2519 in the 32nd Licencing Round, in December 2020. United holds a 100% equity interest in each. Licence P2519 includes the Maria Discovery in block 15/18e.
Quattro Energy is a new UK company incorporated in April 2021 by an experienced North Sea focused management team. The acquisition of United's Central North Sea interests is a first step towards Quattro's objective to build a portfolio of oil & gas appraisal, development, and producing assets.
The completion of the SPA is conditional on OGA approval. It is anticipated that completion of the SPA will be in Q4 2021. The Long stop date for satisfaction is 6 December 2021.
The divestment of these Licences, following a strategic review of the Company's portfolio, will see United exit activities in the North Sea region.
United's Chief Executive Officer, Brian Larkin commented:
"The sale of United's Licenses in the North Sea demonstrates our commitment to portfolio optimisation, which forms a key part of the Group's strategy. The transaction proceeds will provide financial flexibility for the Company to grow its low-cost production business in Egypt and the Greater Mediterranean area, complemented with selected high impact exploration opportunities in the Caribbean and Latin America."
The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 ("MAR") as it forms part of UK Domestic Law by virtue of the European Union (Withdrawal) Act 2018.
United Oil & Gas Plc (Company) |
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Brian Larkin, CEO Sharan Dhami, Head of IR & ESG | brian.larkin@uogplc.com sharan.dhami@uogplc.com
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Beaumont Cornish Limited (Nominated Adviser) |
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Roland Cornish and Felicity Geidt | +44 (0) 20 7628 3396 |
Optiva Securities Limited (Broker) |
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Christian Dennis | +44 (0) 20 3137 1902 |
Murray (PR Advisor) | +353 (0) 87 6909735 |
Joe Heron | jheron@murrayconsultants.ie |
Camarco (Financial PR/IR) |
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Billy Clegg James Crothers Tessa Gough-Allen | +44 (0) 20 3757 4983 uog@camarco.co.uk |
Notes to Editors
United Oil & Gas is a high growth oil and gas company with a portfolio of low-risk, cash generative production, development, appraisal and exploration assets across Egypt, UK, Italy and a high impact exploration licence in Jamaica.
The business is led by an experienced management team with a strong track record of growing full cycle businesses, partnered with established industry players and is well positioned to deliver future growth through portfolio optimisation and targeted acquisitions.
United Oil & Gas is listed on the AIM market of the London Stock Exchange. For further information on United Oil and Gas please visit www.uogplc.com
Quattro Energy is a new company co-founded by Neill Carson (Executive Chairman), Jens Pace (CEO) and Brad Gunn (CFO) incorporated in April 2021. Neill Carson is currently a Non Executive Director at i3 Energy plc, having formerly been the CEO of i3 Energy plc and President & COO of Ithaca Energy (UK) Limited. Jens Pace was previously CEO of Petronor E&P and African Petroleum Corp Ltd. Brad Gunn was previously CFO of Ithaca Energy (UK) Limited.
The acquisition of UOG's CNS interests is a first step towards Quattro's objective to build a portfolio of oil & gas appraisal, development, and producing assets. Quattro are actively progressing funding support for this and other transactions from the capital markets anticipated to complete Q3 2021. www.quattroenergy.co.uk