Update on Corallian Farmout Agreement

RNS Number : 5364J

United Oil & Gas PLC

03 April 2018

 

                                                                                                                                          [3] April 2018

United Oil & Gas Plc

Corallian farmout agreement

Update on Additional Farmed Interest

United Oil & Gas Plc ("UOG", "United" or the "Company"), the London Stock Exchange listed oil and gas exploration and development company, is pleased to announce the extension of an option over the right to purchase an additional farmed interest in the Corallian Energy Limited ("Corallian") interests in its southern UK oil and gas assets. 

On 16 January 2018 United announced it had entered into a farmout agreement with Corallian Energy Limited, a private UK oil and gas appraisal and exploration company.  Under this agreement United agreed to acquire an initial 10 per cent. interest from Corallian in each of three licences held by a joint venture between Corallian (60%) as operator and Corfe Energy Limited ("Corfe") (40%) offshore and onshore southern UK ("Initial Farmed Interest"), by way of paying 13.33 per cent. of the costs associated with the Colter well, planned for Q2/Q3 2018 ("Costs"). In addition, an option was granted under which United can exercise a right to purchase an additional 10 per cent. interest in these licences ("Additional Farmed Interest"), on the same terms as the Initial Farmed Interest (that is by paying Costs).    

This option expired at the end of March 2018, but has been renewed to the end of April 2018 on the same terms whilst the company awaits the transfer of the assigned initial interest from the UK Oil and Gas Authority which is imminent.

United Oil & Gas Plc, Brian Larkin

"We look forward to the drilling of the Colter well. This license fits with our European strategy of building a portfolio driven by low risk, near term activity. We continue to look to build value and the extension of the option on this exciting play is important for our shareholders"

This announcement contains inside information for the purposes of Article 7 of Regulation (EU) 596/2014

For more information please visit the Company's website at www.uogplc.com or contact:

United Oil & Gas Plc (Company)
Brian Larkin	[e-mail]
Optiva Securities Limited (Broker)
Christian Dennis	[phone]
Beaumont Cornish Limited (Financial Adviser)
Roland Cornish and Felicity Geidt	[phone]
Murray (PR Advisor)	[phone]
Joe Heron	[e-mail]

Appendix 1

The Licence

Licence No.	Licence Date	JOA Date	Current Licensees	Current Percentage Interest
P1918	14/06/2012	05/02/2013	Corallian Energy Limited	60%
			Corfe Energy Limited	40%
PEDL330	15/09/2016	None	Corallian Energy Limited	60%
			Corfe Energy Limited	40%
PEDL345	15/09/2016	None	Corallian Energy Limited	60%
			Corfe Energy Limited	40%

Part II

The Farmed Interest

Party	Current Percentage Interest	Farmed Interest	Future Percentage Interest
Corallian Energy Limited	60%	10-20% to United	40-50%
United Oil & Gas plc	nil	10-20% from Corallian	10-20%

Editor's Note:

United Oil & Gas plc (UOG) is listed on the main market of the London Stock Exchange.  UOG was established to explore, appraise and develop low risk assets in Europe and North Africa and to develop higher risk, higher impact exploration projects in Latin America and Africa.

The following table outlines the Company's current licences:

Country	Licence	Operator	United Holding
Italy	Podere Gallina Licence	Po Valley Energy	20%
United Kingdom	Waddock Cross Field	Egdon Oil Plc	26.25%
United Kingdom	PL090 Exploration	Egdon Oil Plc	18.95%
United Kingdom	P1918*	Corallian	10%**
United Kingdom	PEDL 330	Corallian	10%**
United Kingdom	PEDL 345	Corallian	10%**
Jamaica	Walton-Morant*	Tullow Oil plc	20%

*Offshore

** Option to acquire a further 10%

 

END

 

 

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