United Oil and Gas completes Rockhopper Egypt acquisition
United Oil and Gas said the acquisition has an effective date of January 1st 2020, and includes a 22% non-operating interest in the Abu Sennan concession which averaged 7,900 boe per day in the first half of February.
The company paid Rockhopper Exploration (RKH) $11.5 million in cash, and approximately 114 million shares at 3p each, to make up a 18.5% stake in UOG.
As part of the acquisition, Rockhopper is entitled to appoint a non-executive director to the Board of United Oil and Gas.
Stewart MacDonald, Rockhopper's Chief Financial Officer, is expected to be appointed according to a Rockhopper Exploration press release.
Shares in United Oil & Gas were trading flat on Friday at 2.875p
United Oil and Gas, Chief Executive Officer, Brian Larkin said: "Completing the Acquisition of Rockhopper Egypt represents a significant milestone in the development of United, establishing the company as a full-cycle E&P company, and putting us in a strong position for further growth.”
"At over 1,700 boepd, our 22% share of production at Abu Sennan and the revenues it generates are material.”
He continued: “This does not take into account any future growth arising either from the ongoing infill drilling programme at Abu Sennan or the multiple exploration targets that have been independently estimated to hold gross unrisked prospective resources of 29.4 mmboe.”
The company said it sees significant potential in the assets, and said it will put together an exploration drilling plan to target best prospects.
Mr. Larkin added: "With drilling now underway at El Salmiya 5, the first well in the fully funded 2020 infill programme in Egypt, first gas scheduled for later this year in Italy and further progress expected across our other licence areas, we are entering an exciting phase in United's development”
The shares held by Rockhopper are subject to lock-up and disposal provisions for 12 months.
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