Oil and gas exploration firm, United Oil and Gas (UOG) announced on Monday its acquisition of Rockhopper Egypt as well as the sale of United's North Sea Blocks 15/18d and 15/19b (Licence P2366) to Anasuria Hibiscus.
Commenting on the group's notable transactions, Brian Larkin CEO, United Oil and Gas, said "These are highly significant announcements for United which move us closer to our goal of completing a transformational acquisition."
The group highlighted their $16 million acquisition of Rockhopper as an “important milestone” with its existing joint venture partners having unconditionality waived their pre-emption rights, allowing the deal to take place.
Upon completion, the acquisition will deliver over 1,100 boepd net low-cost production with 2.64mmboe net 2P Reserves to United plus large remaining infill and exploration upside.
Most notably, the acquisition, which remains on track to complete during Q4 2019 with an effective date of 1 January 2019, will transform United into a full cycle oil and gas company.
Mr Larkin reiterated the group’s main objective, stating, "We are confident that when we are re-admitted to AIM, later this year, we will have achieved our goal of creating a full cycle oil and gas company with exceptional prospects for growth.
Our portfolio will include high impact exploration assets, low risk development opportunities, discoveries which are near to production and producing assets which show considerable potential for further reserves.”
United further announced another milestone deal, having inked a Sales and Purchase Agreement for their licence, North Sea blocks 15/18d and 15/19b, to Anasuria Hibiscus UK Limited -- this purchase is for a headline consideration of up to $5million.
The deal is subject to regulatory OGA approval and is expected to complete during Q4 2019, the company explained.
Mr Larkin further commented, "Post the completion of these two transformational transactions, United will have both the potential for market leading growth and the team and resources capable of delivering that.
We would like to thank shareholders for their support in this process and look forward to further updating the market."
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