REG - United Oil & Gas PLC - Long Stop Date Extension - North Sea Licence Sale

United Oil & GasAnnouncement

18/05/2023 07:00

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RNS Number : 7951Z  United Oil & Gas PLC  18 May 2023

United Oil & Gas PLC / Index: AIM / Epic: UOG / Sector: Oil & Gas

 

18 May 2023

United Oil and Gas plc

("United" or "the Company")

 

Long Stop Date Extension - Sale of UK Central North Sea Licence

 

United Oil & Gas PLC (AIM: "UOG"), the full cycle oil and gas company
with a portfolio of production, development, exploration and appraisal assets,
provides an update on the conditional sale of the UK Central North Sea
Licence P2519 containing the Maria discovery in Block 15/18 to Quattro Energy
Limited ("Quattro") following the signing of a binding asset purchase
agreement ("APA") on 17(th) January 2023.

 

On 17(th) April 2023, the parties announced that they had agreed a one month
extension to the 17(th) May 2023 of the long stop date in the APA to provide
Quattro sufficient time to comply with conditions precedent related to the
funding requirement under the APA. In agreeing to this extension, it was
expected that this funding process was near completion. Quattro has now
informed United that this process has not completed and that they have
commenced a new financing process which they estimate will now take a minimum
of 2 months to complete.

 

Following engagement with Quattro and their appointed advisor in Canada,
Research Capital Corporation, the Company has agreed to grant a further
extension of the long stop date to 31 July to provide sufficient time for
Quattro to meet the funding requirement under the APA, and has agreed that a
further extension may be required for all conditions precedent to be met to
allow completion of the sale, namely regulatory approvals to enable the
transfer of funds to United, and the licence assignment to Quattro. The
Company will continue to support and facilitate Quattro in its funding
process, however, there can be no guarantee that this new process will succeed
or that the sale will be completed.

 

In considering this extension, the Company has reviewed its strategy and
various options to deliver shareholder value, including potential alternative
purchasers and transaction structures, with particular reference to the
capital investment required to progress the licence through its development.
Based on this, and in line with United's strategy to actively manage its
portfolio, the Company continues to believe that the sale to Quattro on the
current agreed terms remains the best option for United to realise value for
its shareholders. A further update will be provided to the market in due
course.

 

END

This announcement contains inside information for the purposes of Article 7 of
Regulation 2014/596/EU which is part of domestic UK law pursuant to the
Market Abuse (Amendment) (EU Exit) regulations (SI 2019/310).

 United Oil & Gas Plc (Company)

 Brian Larkin, CEO                                      brian.larkin@uogplc.com (mailto:brian.larkin@uogplc.com)
 Sharan Dhami, Head of IR & ESG                         sharan.dhami@uogplc.com (mailto:sharan.dhami@uogplc.com)

 Beaumont Cornish Limited (Nominated Adviser)
 Roland Cornish | Felicity Geidt | Asia Szusciak        +44 (0) 20 7628 3396

 Tennyson Securities (Joint Broker)
 Peter Krens                                            +44 (0) 20 7186 9030

 Optiva Securities Limited (Joint Broker)
 Christian Dennis                                       +44 (0) 20 3137 1902

 Camarco (Financial PR)
 Georgia Edmonds | Emily Hall | Sam Morris              +44 (0) 20 3757 4983 | uog@camarco.co.uk (mailto:uog@camarco.co.uk)

 

Notes to Editors

United Oil & Gas is the full-cycle oil and gas company with a portfolio
of low-risk, cash generative production, development, appraisal and
exploration assets across Egypt, UK 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 (http://www.uogplc.com) .

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