United Oil & Gas to Raise $6.25 Million via Placing to Fund Rockhopper Egypt Buy

   By Ian Walker 
 

United Oil & Gas PLC (UOG.LN) said Monday that it will raise $6.25 million to part-fund the previously announced acquisition of Rockhopper Egypt Pty Ltd. from Rockhopper Exploration PLC (RKH.LN).

The energy company said it will issue 159.04 million new ordinary shares at 3 pence each, a 26% discount to its closing share price of 4.05 pence on July 22, the day before the shares were suspended from trading.

United Oil announced on July 23 that it planned to buy Rockhopper's Egyptian business for $16 million in a reverse takeover, with funding provided by integrated energy giant BP PLC (BP.LN). BP has provided up to $8 million and United Oil is issuing 114.5 million new ordinary shares worth $4.5 million to Rockhopper Exploration.

It said at the time that the transformational acquisition of Rockhopper Egypt includes the 22% nonoperated position of the Abu Sennan concession in Egypt.

United Oil will gain 1,100 barrels of oil equivalent a day in low-cost production, as well as 2.6 million barrels in proved and probable reserves.

Trading in United Oil shares is due to be restored at 0800 GMT on Monday.

Write to Ian Walker at [e-mail]

(END) Dow Jones Newswires

December 09, 2019 03:14 ET (08:14 GMT)

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