Brief: United Oil & Gas Receives Default Notice From Kuwait Energy Egypt Ltd

United Energy

22/01/2024 07:24

Jan 22 (Reuters) - United Oil & Gas PLC  UOGU.L :
    * RECEIPT OF NOTICE OF DEFAULT FROM OPERATOR OF ABU SENNAN
CONCESSION
    * RECEIVED A DEFAULT NOTICE FROM KUWAIT ENERGY EGYPT LIMITED
("KUWAIT ENERGY" OR "OPERATOR") FOR A TOTAL OF USD $3,822,143
    * DECISION TO DIVEST FROM ABU SENNAN WAS INFLUENCED BY
CHALLENGING
MACRO-ECONOMIC CONDITIONS IN EGYPT
    * HAD BEEN IN ADVANCED DISCUSSIONS REGARDING POTENTIAL SALE
OF ITS
22% STAKE IN ABU SENNAN CONCESSION TO UNITED ENERGY EGYPT
    * HOWEVER, DISCUSSIONS ABORTED AS COMPANY WAS UNABLE TO
AGREE TO
EXECUTE DRAFT SALE AND PURCHASE AGREEMENT
    * COMPANY BELIEVES THAT ITS COMMERCIAL POSITION REMAINS
UNCHANGED
BETWEEN A DEFAULT SCENARIO OUT OF ABU SENNAN CONCESSION
    * COMPANY IS IN DISCUSSIONS WITH ITS DEBT PROVIDER (CURRENT
BALANCE OWING USD $1.089 MILLION)
    * WILL CONTINUE TO ENGAGE WITH OPERATOR TO SEEK A SOLUTION
AND/OR
EXPLORE OTHER OPTIONS

Source text for Eikon:  ID:nRSV4312Aa 
Further company coverage:  UOGU.L 

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