United Oil & Gas PLC

Corallian farmout agreement

RNS Number : 9768B
United Oil & Gas PLC
16 January 2018
 

                                                                                                                                16 January 2018

 

United Oil & Gas Plc

Corallian farmout agreement

 

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 an agreement to farm-in to the Corallian Energy Limited ("Corallian") interests in its southern UK oil and gas assets. 

 

United has entered into a farmout agreement with Corallian Energy Limited, a private UK oil and gas appraisal and exploration company, 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 2018.  In addition, an option has been granted, which expires at the end of March, 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.

 

Corallian and Corfe jointly hold equity in licence P1918, offshore southern UK, and onshore UK licences PEDL330 and PEDL345 (further details of which are set out in Appendix 1 below).  The P1918 licence, includes the Colter discovery, adjacent to the largest onshore oil field in Europe, Wytch Farm, which has produced in excess of 450 million barrels of oil.

 

An appraisal well on the Colter structure is planned to be drilled in Q2 2018 and will cost approximately £7millon gross. United estimate their share of this to be £933,100.  It is planned to drill this well up-dip of the Sherwood Sandstone discovery made by Well 98/11-3 in 1986. Although this new well will be drilled via an offshore jack-up, potential development is likely to be through the facilities at Wytch Farm via extended reach drilling.

 

Additionally, United and Corallian have established an Area of Mutual Interest ("AMI") for the area, enabling the partnership to identify and target further opportunities within the same play.

 

United Oil & Gas Plc, Brian Larkin:

 

"We are very pleased to announce this deal and AMI agreement with Corallian. The Colter prospect is the same play that has been so productive at Wytch Farm, and joins our existing licence at Waddocks Cross, PL090, in the United portfolio.

 

This, our second cluster of UK licences and fourth in total, gives United's shareholders access to a near-term, drill-ready target in a highly prospective region. We look forward to drilling of the well in Q2 2018.

 

We continue to evaluate further acquisitions and farm-in opportunities in order to grow our portfolio and deliver value for 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

[email protected]

 

 

Optiva Securities Limited (Broker)

 

Christian Dennis

+44 (0) 20 3137 1902

 

 

Beaumont Cornish Limited (Financial Adviser)

 

Roland Cornish and Felicity Geidt

+44 (0) 20 7628 3396

 

 

Murray (PR Advisor)

 +353 (0) 87 6909735

Joe Heron

[email protected]

 

Appendix 1

The Licence

Licence No.

Licence Date

Current Licensees

Current Percentage Interest

P1918

14/06/2012

Corallian Energy Limited

60%

 

 

Corfe Energy Limited

40%

PEDL330

15/09/2016

Corallian Energy Limited

60%

 

 

Corfe Energy Limited

40%

PEDL345

15/09/2016

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%


This information is provided by RNS
The company news service from the London Stock Exchange
 
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