UOG agrees sale of UK licences
United Oil & Gas announced on September 7 it had agreed to sell UK central North Sea licences P2480 and P2519 for up to £3.2mn ($4.4mn) to fellow London-based player Quattro Energy.
The companies signed a heads of agreement on the sale in late July. Expected to be closed in the fourth quarter, the deal will result in UOG's departure from the North Sea region. The company also works in Egypt, Italy and Jamaica.
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Quattro will pay an initial £2mn on completion and a further £1.2mn if a development plan is approved for block 15/18e at P2519, which contains the Maria discovery.
UOG acquired P2480 and P2519 in licensing rounds in 2019 and 2020 respectively, and has undertaken lost-cost analysis since then seeking to boost their value. CEO Brian Larkin said their sale would "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."