REG - United Oil & Gas PLC - Long Stop Date Extension

United Oil & GasAnnouncement

08/08/2023 07:00

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RNS Number : 5646I  United Oil & Gas PLC  08 August 2023

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

 

8 August 2023

United Oil & 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 (the "Licence") to Quattro
Energy Limited ("Quattro") a UK North Sea focused company which is being
acquired by Jesmond Capital Limited to form an enlarged entity to be listed on
the TSXV.

 

On 1 August 2023 the Company announced that all the conditions under the asset
purchase agreement (the "APA") for the conditional sale of its UK Central
North Sea Licence P2519 had not been met by the expiry of the long stop date
on 31 July 2023. Further to this announcement United confirms that following
the receipt by United of a US$100,000 non-refundable deposit from Quattro and
a rescheduling of the total consideration payments, the parties have agreed an
extension of the long stop date in the APA to 30 September 2023. It was also
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,
with such extension to be automatically granted on the satisfaction of the
Quattro funding condition being met by 30 September 2023.

 

Whilst there has been no change to the maximum consideration under the APA of
£5.7 million (cUS$7.2 million), following discussions with Quattro and their
brokers the parties have agreed that revising the schedule of consideration
payments will support the Quattro funding process and significantly increase
the executability of the transaction. In considering this extension and
revised payment terms, including the receipt of the non-refundable deposit,
the Company has reviewed the other available options to deliver value to
shareholders from this Licence and have concluded that the sale to Quattro
remains the best option at this time.

 

Revised consideration payments:

-       Payment by Quattro to United of US$100,000 non-refundable
deposit on 7 August 2023

-       £1million of initial cash payment to United now included in
Contingent bonus payments, resulting in £1.45 million, less the
non-refundable deposit due on completion (US$1.75 million)

-       No change to the additional £1.0 million to be paid to United
upon approval of an FDP for Block 15/18e

-       Contingent bonus payments of up to £3.25 million (previously
£2.25 million) upon reaching gross production thresholds from the field of
three, four and five million barrels

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).

 Enquiries
 United Oil & Gas Plc (Company)
 Brian Larkin, CEO                                       brian.larkin@uogplc.com (mailto:brian.larkin@uogplc.com)
 Peter Dunne, CFO                                        Peter.dunne@uogplc.com (mailto:Peter.dunne@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

 

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 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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