United Oil & Gas PLC Update on Corallian Farmout Agreement (5364J)

TIDMUOG

RNS Number : 5364J

United Oil & Gas PLC

03 April 2018

[3] April 2018

United Oil & Gas Plc

Corallian farmout agreement

Update on Additional Farmed Interest

United Oil & Gas Plc ("UOG", "United" or the "Company"), the London Stock Exchange listed oil and gas exploration and development company, is pleased to announce the extension of an option over the right to purchase an additional farmed interest in the Corallian Energy Limited ("Corallian") interests in its southern UK oil and gas assets.

On 16 January 2018 United announced it had entered into a farmout agreement with Corallian Energy Limited, a private UK oil and gas appraisal and exploration company. Under this agreement United agreed to acquire an initial 10 per cent. interest from Corallian in each of three licences held by a joint venture between Corallian (60%) as operator and Corfe Energy Limited ("Corfe") (40%) offshore and onshore southern UK ("Initial Farmed Interest"), by way of paying 13.33 per cent. of the costs associated with the Colter well, planned for Q2/Q3 2018 ("Costs"). In addition, an option was granted under which United can exercise a right to purchase an additional 10 per cent. interest in these licences ("Additional Farmed Interest"), on the same terms as the Initial Farmed Interest (that is by paying Costs).

This option expired at the end of March 2018, but has been renewed to the end of April 2018 on the same terms whilst the company awaits the transfer of the assigned initial interest from the UK Oil and Gas Authority which is imminent.

United Oil & Gas Plc, Brian Larkin

"We look forward to the drilling of the Colter well. This license fits with our European strategy of building a portfolio driven by low risk, near term activity. We continue to look to build value and the extension of the option on this exciting play is important for our shareholders"

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

For more information please visit the Company's website at www.uogplc.com or contact:

 
 United Oil & Gas Plc (Company) 
=====================================  ================================ 
 Brian Larkin                           [e-mail] 
=====================================  ================================ 
 
 Optiva Securities Limited (Broker) 
=====================================  ================================ 
                                        [phone] 
 Christian Dennis                        1902 
=====================================  ================================ 
 
 Beaumont Cornish Limited (Financial 
  Adviser) 
=====================================  ================================ 
 Roland Cornish and Felicity            [phone] 
  Geidt                                  3396 
=====================================  ================================ 
 
 Murray (PR Advisor)                     [phone] 
=====================================  ================================ 
 Joe Heron                              [e-mail] 
=====================================  ================================ 
 

Appendix 1

The Licence

 
 Licence      Licence      JOA Date      Current Licensees       Current 
  No.           Date                                            Percentage 
                                                                 Interest 
---------  ------------  ------------  ---------------------  ------------ 
                                        Corallian Energy 
 P1918      14/06/2012     05/02/2013    Limited                   60% 
---------  ------------  ------------  ---------------------  ------------ 
                                        Corfe Energy Limited       40% 
 ----------------------  ------------  ---------------------  ------------ 
                                        Corallian Energy 
 PEDL330    15/09/2016    None           Limited                   60% 
---------  ------------  ------------  ---------------------  ------------ 
                                        Corfe Energy Limited       40% 
 ----------------------  ------------  ---------------------  ------------ 
                                        Corallian Energy 
 PEDL345    15/09/2016    None           Limited                   60% 
---------  ------------  ------------  ---------------------  ------------ 
                                        Corfe Energy Limited       40% 
 ----------------------  ------------  ---------------------  ------------ 
 

Part II

The Farmed Interest

 
 Party                 Current     Farmed Interest      Future 
                      Percentage                       Percentage 
                       Interest                         Interest 
------------------  ------------  -----------------  ------------ 
 Corallian Energy 
  Limited                60%       10-20% to United     40-50% 
------------------  ------------  -----------------  ------------ 
 United Oil & Gas                    10-20% from 
  plc                    nil           Corallian        10-20% 
------------------  ------------  -----------------  ------------ 
 

Editor's Note:

United Oil & Gas plc (UOG) is listed on the main market of the London Stock Exchange. UOG was established to explore, appraise and develop low risk assets in Europe and North Africa and to develop higher risk, higher impact exploration projects in Latin America and Africa.

The following table outlines the Company's current licences:

 
 Country           Licence              Operator            United Holding 
----------------  -------------------  ------------------  --------------- 
                   Podere Gallina 
 Italy              Licence             Po Valley Energy    20% 
----------------  -------------------  ------------------  --------------- 
                   Waddock Cross 
 United Kingdom     Field               Egdon Oil Plc       26.25% 
----------------  -------------------  ------------------  --------------- 
 United Kingdom    PL090 Exploration    Egdon Oil Plc       18.95% 
----------------  -------------------  ------------------  --------------- 
 United Kingdom    P1918*               Corallian           10%** 
----------------  -------------------  ------------------  --------------- 
 United Kingdom    PEDL 330             Corallian           10%** 
----------------  -------------------  ------------------  --------------- 
 United Kingdom    PEDL 345             Corallian           10%** 
----------------  -------------------  ------------------  --------------- 
                                        Tullow Oil 
 Jamaica           Walton-Morant*        plc                20% 
----------------  -------------------  ------------------  --------------- 
 

*Offshore

** Option to acquire a further 10%

This information is provided by RNS

The company news service from the London Stock Exchange

END

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April 03, 2018 02:01 ET (06:01 GMT)