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UK: United Oil & Gas sells Crown discovery (North Sea Blocks 15/18d and 15/19b) to Anasuria Hibiscus UK
17 Jul 2019
- United agrees to sell North Sea Blocks 15/18d and 15/19b ('License P2366') to Anasuria Hibiscus UK
- Consideration of up to US $5 million to be paid for North Sea Licence
AIM-listed United Oil & Gas has announced the signing of non-binding Heads of Terms on an agreement to sell North Sea blocks 15/18d and 15/19b to Anasuria Hibiscus UK 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') 30th 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. 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.
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:
'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.'
Source: United Oil & Gas