United Oil & Gas completes $5 million sale of North Sea Licence
Francesca Morgan
Company News - 2 mins
13:09, 12th December 2019

United Oil & Gas (AIM:UOG) FOLLOW has completed its sale of North Sea Licence P2366 two Anasuria Hibiscus UK for a headline consideration of up to US$5million. 

This morning’s statement detailed the sale of the Licence which is made up collectively of North Sea Blocks 15/18d and 15/19b.

The completed sale triggered a $900,000 payment to the sellers, United and its minority partner Swift Exploration, with $855,000 net going to United.

United’s Chief Executive, Brian Larkin, acknowledged the completion of the sale as proof of the group’s ability to manage their portfolio in a way which “delivers tangible returns for shareholders.”

“We have, in a short space of time, added significant value to Licence P2366 and realised a significant return,” he said.

The $900,000 payment is in addition to the $100,000 ($95,000 net to United) that was previously paid on the signing of the Sale and Purchase Agreement which was detailed in an earlier October statement.

Shares in United Oil & Gas were trading 3.36% higher at 3.075p on Thursday afternoon.

United explained how a further $3 million would be paid by Hibiscus before the end of 2020, subject to ‘key milestones’ being achieved. 

Larkin pointed to activity across United’s portfolio as an indicator for a momentum “set to continue” — this includes the completion of the Rockhopper Egypt acquisition and the commencement of production at the Selva field in Italy across the next 12 months, he explained.

The company confirmed on Monday an equity raise of $6.25 million in relation to the group’s acquisition of Rockhopper’s Egypt business which will have an effective date of 1st January 2020.

“We expect 2020 will not be short of significant news flow across our asset base,” Larkin added in Monday’s statement.

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