AIM-listed United Oil & Gas, the oil and gas company with a high impact exploration asset in Jamaica and a development asset in the UK has announced the completion of its withdrawal from Egypt.
Abu Sennan Withdrawal
The Company has successfully completed all the paperwork to fully withdraw from its 22% stake in the Abu Sennan Concession effective 1 January 2024. Completion of this withdrawal remains contingent on obtaining formal approvals from the Egyptian General Petroleum Corporation ('EGPC') and the Minister for the Deed of Assignment which should be received in due course.
In satisfaction of outstanding cash calls related to the concession, United has agreed to transfer to the non-defaulting parties of Kuwait Energy and Global Connect USD $220,000 from its receivables balance of approximately USD $840,000 due from EGPC.
Receivables Balance Update
Following final reconciliation of working capital in connection with the licence withdrawal, the remaining receivables balance due to the Company has been revised upwards from the previously announced figure equivalent to c. USD $500,000 (as per the 16 April 2024 update RNS) to approximately USD $840,000. Following the settlement transfer of USD $220,000 to Kuwait Energy and Global Connect, United will receive a net amount of approximately USD $620,000. United continues to engage positively with the EGPC with regards to recovery of these outstanding amounts.
The completion of the Egypt withdrawal enables the Company to fully concentrate on advancing its core projects, particularly the Jamaican work programme and ongoing farmout process.
Brian Larkin, United Chief Executive Officer commented:
'We are pleased to have reached an agreement with Kuwait Energy and Global Connect, allowing us to withdraw from the Abu Senna concession. Our continued discussions with EGPC regarding to the outstanding receivables are also encouraging, and we expect resolution shortly. We wish our former Join Venture partners all the best in their future endeavours.
'We can now focus our efforts on growth opportunities, particularly in Jamaica. Our Farmout discussions are progressing well, and our team is making excellent headway with selected parties. We look forward to providing further updates to shareholders shortly.'
Source: United Oil & Gas
