The completion of the Sale has triggered a payment of US$900 000 to the sellers, United and its minority partner Swift Exploration Ltd. (US$855 000 net to United). This is in addition to US$100 000 (US$95 000 net to United) previously paid on signing of the Sale and Purchase Agreement (see announcement of 7 October 2019). Up to a further US$3 million will be paid by Hibiscus (US$2.85 million net to United) before the end of 2020, subject to certain key milestones being achieved. In the event that these milestones are not achieved the licence will revert to United and Swift Exploration Limited, if Hibiscus exercises its option not to pay the US $3 million and the US$1 million will not be repaid. In addition, up to US$1 million will be paid through an overriding royalty scheme once the Crown discovery has commenced production.
Brian Larkin CEO, United Oil and Gas PLC: “The completion of this divestment is further proof of United’s ability to manage our portfolio in a way which delivers tangible returns for shareholders. We have, in a short space of time, added significant value to Licence P2366 and realised a significant return. With activity across our portfolio of multi-stage assets over the next twelve months, including the completion of the Rockhopper Egypt acquisition and the commencement of production at the Selva field in Italy, the momentum behind the business is set to continue and I look forward to providing further updates on our progress”.
Read the article online at: https://www.oilfieldtechnology.com/offshore-and-subsea/13122019/united-oil-gas-completes-sale-of-north-sea-blocks/