United Oil & Gas PLC United proposed sale of Crown Discovery (8479F)

TIDMUOG

RNS Number : 8479F

United Oil & Gas PLC

17 July 2019

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

17 July 2019

United Oil & Gas PLC ("United" or the "Company")

United proposed sale of Crown Discovery

-- United agrees to sell North Sea Blocks 15/18d and 15/19b ("License P2366") to Anasuria Hibiscus UK Limited

   --    Consideration of up to US $5 million to be paid for North Sea Licence 

United Oil & Gas Plc (AIM: "UOG"), the AIM listed oil and gas exploration and development company, is pleased to announce the signing of non-binding Heads of Terms on an agreement to sell North Sea blocks 15/18d and 15/19b ("the Blocks") to Anasuria Hibiscus UK Limited for a headline consideration of up to $5million.

United was awarded the North Sea blocks 15/18d and 15/19b, in the UK Oil and Gas Authority ("OGA") 30(th) Licencing Round, in August 2018, and holds a 95% equity interest. The blocks include the Crown Discovery, initially discovered by Conoco Philips in 1998. Low-cost but important data analysis, carried out by the United team, has added significant value to the licence since acquisition.

The terms of the sale will see an immediate and non - refundable payment of US $1 million at SPA completion, of which US $0.95 million will be payable to United and US $0.05 million will be payable to United's minority partner Swift Exploration Ltd. Subject to further milestones being achieved, an additional sum of up to US $3 million will be paid before the end of 2020 (US $2.85 million net to United). A further US $1 million (US $0.95 million net to United) will be paid once the field is on production. In the unlikely event that these milestones are not reached, the licence will revert back to United and Swift Exploration Ltd.

This deal is subject to completion of satisfactory due diligence, including geological, legal and financial due diligence, regulatory OGA approval and definitive documentation.

Brian Larkin CEO, United Oil and Gas PLC:

"Our primary goal as a management team is to deliver value for our shareholders. The work of our technical team in attaining and developing this licence has delivered an excellent outcome for the Company, allowing us, on completion, to realise a significant return in a very short space of time. Our strategy involves the active management of our portfolio of assets, and this transaction demonstrates our ability to deliver on that strategy.

"United remains committed to building a full cycle oil and gas company. The proceeds of this transaction will further strengthen our balance sheet to support the growth of the company."

**ENDS**

This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014.

 
 United Oil & Gas Plc (Company) 
 Brian Larkin                           [e-mail] 
 
 Optiva Securities Limited (Broker) 
 Christian Dennis                       [phone] 
 
 Beaumont Cornish Limited (Nominated 
  Adviser) 
 Roland Cornish and Felicity Geidt      [phone] 
 
 Murray (PR Advisor)                    [phone] 
 Joe Heron                              [e-mail] 
 
 St Brides Partners (Financial 
  PR/IR) 
 Frank Buhagiar and Juliet Earl         [phone] 
 

Notes to Editors

United Oil & Gas plc (UOG) is an AIM-traded company. United was established to explore, appraise and develop low risk assets in Europe and to develop higher risk, higher impact exploration projects in the Caribbean, Latin America and Africa.

The following table outlines the Company's licence interests:

 
 Country    Licence                Operator                    United Interest 
            Podere Gallina 
 Italy       Licence               Po Valley Energy Limited    20% 
           ---------------------  --------------------------  ---------------- 
                                   Egdon Resources UK 
 UK         Waddock Cross Field     Limited                    26.25% 
           ---------------------  --------------------------  ---------------- 
                                   Egdon Resources UK 
 UK         PL090 Exploration       Limited                    18.95% 
           ---------------------  --------------------------  ---------------- 
 UK         P1918                  Corallian Energy Limited    10% 
           ---------------------  --------------------------  ---------------- 
  UK        PEDL 330               Corallian Energy Limited    10% 
           ---------------------  --------------------------  ---------------- 
 UK         PEDL 345               Corallian Energy Limited    10% 
           ---------------------  --------------------------  ---------------- 
 UK         P2366                  United Oil & Gas Plc        95% 
           ---------------------  --------------------------  ---------------- 
 Jamaica    Walton-Morant          Tullow Jamaica Ltd          20% 
           ---------------------  --------------------------  ---------------- 
 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact [e-mail] or visit www.rns.com.

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July 17, 2019 06:20 ET (10:20 GMT)