United Oil & Gas Plc, the AIM-listed oil and gas exploration, development and production company, is pleased to announce its audited results for the year ended 31 December 2019.
2019 highlights :
· Successful acquisition of Rockhopper Egypt and its 22% interest in the Abu Sennan concession onshore Egypt
· Continued progress in securing the environmental and legal permitting for the Selva gas development project in Italy with the objective of first gas in early 2021
· Significant profit realised from the divestment of the Crown discovery, following value enhancing input from the United technical team
· Award of licences in highly prospective area in North Sea in UK 31st Licencing Round
· Significant strengthening of the United Executive team and Board with the appointment of David Quirke as Chief Financial Officer
· Acquisition of Rockhopper Egypt finalised in February 2020
· Since the completion of the acquisition, the Abu Sennan asset has performed strongly
o The ASH-2 well has continued to outperform expectations, with current gross production from the well remaining above 3,000 bopd. Plans are now in place for further development of the gas at the ASH field, with this project due for completion before the end of 2020
o Gas from Al Jahraa was brought onstream in March, adding an average 650 boepd gross, and reducing flaring on the asset
o Results from the ES-5 development well, which spudded in February, are expected to be announced shortly
· All Egyptian production, including new gas supply, has positive operational cashflow even at current low market prices
o Low operating costs at Abu Sennan of around $6.5/bbl provide solid operating margins even at low price levels
o The Company’s pre-payment facility with BP provides downside price protection by effectively hedging 6,600 bbls of oil per month at $60/bbl until September 2022
o c.20% of United’s net production is gas which is sold under fixed contract that is relatively insensitive to oil-price changes
· Discussions are being initiated with Jamaican Government to agree a path forward for the transformative Walton Morant licence
· In line with the completion of the Rockhopper acquisition, United has recently completed a strategic review of its licences to ensure optimal use of resources. Accordingly, the Company will seek to divest non-core assets and maintain a focus on Mediterranean (Italy, Egypt), Jamaican and North Sea assets
· In response to Covid-19, the Company has proactively moved to defer non-committed capital expenditure and dramatically reduce corporate budgets with savings of $500,000 delivered across the business. In addition, three of the four wells planned for 2020 in Egypt have now been deferred until market conditions improve, providing further net Capex savings of over $2m to United
CEO, Brian Larkin, reported:
“I am pleased with the significant progress that the Company has made throughout 2019. At the beginning of the year we outlined our intention to complete a transformative acquisition and to build a full cycle oil and gas company. We have achieved both goals with the Rockhopper acquisition, which has already exceeded expectations. In addition to the continued drilling success on the licence, which has seen production grow rapidly and contribute positive cashflow despite the current pricing environment, we are glad to have built new partnerships with BP and Rockhopper.
Beyond the Rockhopper deal we have made excellent progress across our portfolio. We have delivered shareholder value through operations, geological assessment and through acquisition and divestment.
Covid-19 has caused unprecedented disruption to our world and to our industry. United’s management has acted quickly to protect our business and to ensure that our strategy is appropriate to these circumstances. While we are currently adopting a prudent approach, this is with the objective of ensuring that we maintain a pipeline of opportunities for future development and emerge from this challenging time in a position to take advantage of opportunities which may arise. ”
Annual General Meeting
In light of the Coronavirus (COVID-19) pandemic and the UK Government’s measures to restrict travel and public gatherings of more than two people who do not live together, it will not be possible to hold the AGM in its usual format. The meeting will be held at 9 Upper Pembroke Street, Dublin 02 KR83, Ireland at 11:00 a.m. on 29 June 2020. This year’s AGM will be organised as a closed meeting. Shareholders must not attend the AGM in person and anyone seeking to attend in person will be refused entry. The Company will make arrangements for a quorum to be present to transact the formal business of the meeting as set out in the notice of the AGM.
Extracts from the Annual Report are set out below. The financial information set out below does not constitute the Company’s statutory accounts for the periods ended 31 December 2019 or 31 December 2018 but it is derived from those accounts. Statutory accounts for 31 December 2018 have been delivered to the Registrar of Companies and those for 31 December 2019 will be delivered following the Company’s Annual General Meeting. The auditors have reported on those accounts, their reports were unqualified and did not contain statements under section 498(2) or (3) of the Companies Act 2006.
The Company encourages shareholders to vote on the resolutions or to appoint the Chairman of the AGM as a proxy to vote on their behalf. Shareholders can vote on the resolutions using an online portal, following the procedure below.
· Visiting www.shareregistrars.uk.com and following the online instructions. Through the website shareholders will be able to access the Registrars’ Portal, on which they will be able to register to be able to vote. For security reasons, registration is a two-stage authentication process. Once registered, shareholders will be able to vote online via the platform.
· Shareholders can submit their completed Form of Proxy electronically by emailing the same to email@example.com
· Completing and returning the Form of Proxy to the Company’s Registrars, Share Registrars Limited, The Courtyard, 17 West Street, Farnham, Surrey GU9 7DR no later than 48 hours before the Annual General Meeting
In the event that further disruption to the AGM becomes unavoidable or there are any changes to the current AGM arrangements, the Company will announce any changes to the meeting (such as timing or venue) as soon as reasonably practicably through a Regulatory Information Service and the Company’s website.
Pursuant to Rule 20 of the AIM Rules for Companies, copies of both the Annual Report and the Notice will shortly be available for inspection at www.uogplc.com .
In order to allow shareholders the opportunity to engage with the Company, United will be holding a shareholder call ahead of the AGM. This call will take place on 25 June 2020 at 11.00 a.m. Shareholders are invited to submit questions in advance to firstname.lastname@example.org . The leadership team will give an update on the Company and run through a corporate presentation as well as answering shareholder questions. Dial in details for the call will be posted on the Company’s website and via a Regulatory Information Service.
This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014.
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