United Oil & Gas PLC (AIM: “UOG”), an all-encompassing oil and gas company with various assets spanning from production to exploration, has updated its status regarding the tentative sale of UK Central North Sea Licence P2519, which includes the Maria discovery in Block 15/18, to Quattro Energy Limited (“Quattro”).
This update follows a legally binding asset purchase agreement (“APA”) signed on 17th January 2023.
On 17th April 2023, both parties revealed they had agreed to a one-month extension, moving the APA’s final due date to 17th May 2023. This was intended to provide Quattro ample time to meet the prerequisite funding conditions outlined in the APA. At the time, it was believed that Quattro’s funding efforts were nearing completion. However, Quattro has now notified United that they have begun a new financing process expected to take at least two months.
After discussions with Quattro and their chosen advisor in Canada, Research Capital Corporation, United has agreed to extend the APA’s final deadline again to 31 July. This should give Quattro sufficient time to meet the APA’s funding conditions and potentially pave the way for further extensions to ensure all the necessary requirements are met for the sale to go through. This includes gaining regulatory approval for the fund transfer to United and the licence handover to Quattro. While United will continue to assist Quattro in its financing endeavours, it acknowledges that there are no guarantees regarding the success of this new funding attempt or the completion of the sale.
In deliberating this extension, United has reevaluated its strategy and other options to provide shareholder value, including the possibility of alternative buyers and transaction models, and especially considering the necessary capital investment for licence development. Based on this evaluation and in sync with United’s active portfolio management strategy, the company still views the sale to Quattro under the currently agreed terms as the best way to generate value for its shareholders. The company will share more updates on the situation with the market when appropriate.
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