Shares in United Oil & Gas PLC (AIM: UOG) plunged during early Tuesday trading following a warning about its cash position, as the company continues to await overdue payments from Egypt.
In a statement, the company announced it is now reducing costs to the “bare minimum” to manage its financial challenges.
The delayed payments, previously described in mid-December as “imminent,” have yet to be received.
United Oil & Gas assured investors that discussions in Egypt are ongoing and stated it is “taking all necessary steps to secure a prompt resolution.”
United Oil & Gas has announced that its farm-out discussions regarding its Jamaican asset are now on hold until the new year.
Chief executive Brian Larkin stated: “We are continuing to engage with EGPC to secure our receivables due. In parallel, the company has had to make some decisions to maximise our cash resources.”
He added, “With this in mind, we plan to significantly reduce the company’s cost base to essential outgoings only, ensuring we optimise the chances of securing a potential farm-out agreement despite our limited funds and timeframe.”
In London trading, United Oil & Gas shares plunged 32.26% to 0.13p, leaving the company with a market valuation of just over £1 million.
