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 provided an update before the Christmas period.
Egyptian Receivables
The UOG CEO met with the CEO of EGPC on the 12th November and received confirmation that the $620,000 receivable, as previously announced on 31 October 2024, was expected to be paid imminently. While funds have not yet been received, discussions remain active, and the Company is taking all necessary steps to secure prompt resolution. An update will be provided to the market as soon as funds are received.
Jamaica Farm Out Update
The Company was engaged in discussions with selected parties, but those discussions have been suspended until the new year. We also continue to explore potential interest from other parties, but we don't expect those discussions to progress further until the new year either.
Corporate Update
The Company is taking a prudent approach to costs. We are currently reviewing our cost structure and we plan to implement significant reductions effective immediately. As part of this effort, all costs will be cut to a bare minimum. These measures are being taken in order to maximise existing cash balances in case there are further delays in receivables from EGPC and until a potential farm out has progressed.
Brian Larkin, United Chief Executive Officer commented:
'We are continuing to engage with EGPC to secure our receivables due. In parallel, the Company has had to make some decisions to maximise our cash resources. With this in mind, we plan to significantly reduce the Company's cost base to absolute essential outgoings only, in order to maximise the chances of securing a potential farmout agreement within the constraints of our limited funds and timeframe.'
Source: United Oil & Gas
