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United Oil & Gas sells two UK Central North Sea licences

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Oilfield Technology,

United Oil & Gas Plc has entered into a binding sale and purchase agreement (SPA) with Quattro Energy Ltd. to sell UK Central North Sea Licences P2480 and P2519 for a headline consideration of up to £3.2 million (c. US$4.4 million).

The transaction will result in an initial payment of £2 million to United (c. US$2.8 million) in cash at completion. Subject to a Field Development Plan being approved for block 15/18e, an additional uplift amount of £1.2 million will be paid to United.

United was awarded Licence P2480, in the UK Oil and Gas Authority (OGA) 31st Licencing Round in August 2019 and Licence P2519 in the 32nd Licencing Round, in December 2020. United holds a 100% equity interest in each. Licence P2519 includes the Maria Discovery in block 15/18e.

Quattro Energy is a new UK company incorporated in April 2021.

The completion of the SPA is conditional on OGA approval. It is anticipated that completion of the SPA will be in 4Q21. The Long stop date for satisfaction is 6 December 2021.

The divestment of these licences, following a strategic review of the Company's portfolio, will see United exit activities in the North Sea region.

United's CEO, Brian Larkin commented: "The sale of United's Licenses in the North Sea demonstrates our commitment to portfolio optimisation, which forms a key part of the Group's strategy. The transaction proceeds will provide financial flexibility for the Company to grow its low-cost production business in Egypt and the Greater Mediterranean area, complemented with selected high impact exploration opportunities in the Caribbean and Latin America."

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