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."
Read the latest issue of Oilfield Technology in full for free: Issue 3 2021
Oilfield Technology’s third issue of 2021 starts with a report from Wood Mackenzie focusing on the upstream industry’s fortunes in Asia-Pacific. The rest of the issue is dedicated to features covering offshore engineering, coiled tubing, frac technology, completion technologies, water management, well placement and much more.
Exclusive contributions come from Wild Well Control, Cudd Pressure Control, TMK, NOV, Archer, Tendeka, TETRA Technologies and more.
Read the article online at: https://www.oilfieldtechnology.com/offshore-and-subsea/07092021/united-oil-gas-sells-two-uk-central-north-sea-licences/