United Oil & Gas PLC

Option Agreement to Farm into Licence P2264

RNS Number : 7260C
United Oil & Gas PLC
24 January 2018
 

                                                                                                                                                                   24 January, 2018

 

United Oil & Gas Plc

Option Agreement to Farm into Licence P2264

 

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 a no cost option agreement to farm into offshore Block 49/29c UK Licence P2264 which contains the Acle prospect ("Option Agreement"), jointly owned by Swift Exploration Limited ("Swift") (50 per cent.) and Stelinmatvic Industries Ltd ("Stelinmatvic") (50 per cent.). 

 

The Acle prospect is a clear 2.5 km2 four-way dip closure with further fault-bounded upside. Like most fields in the Southern North Sea, the reservoir is located in the Permian Rotliegendes formation and the Acle structure is located in close proximity to several significant producing gas fields including Gawain, Davy, Sean and Boyle. Acle is a low risk exploration prospect as a function of its four-way dip closure in a proven hydrocarbon fairway. As such, it has been ascribed a high chance of drilling success.

 

On exercise of this Option Agreement, United will sign a farm-in agreement with Swift and Stelinmatvic and will acquire 24 per cent interest in the licence, being 12 per cent from each of Swift and Stelinmatvic. For the combined 24 per cent interest, United will pay 30 per cent of the costs associated with the drilling of the first exploration well. In addition, United will pay £20,000 in cash to each partner on signing of the farm-in agreement.

 

The Option Agreement is exercisable upon a firm commitment being made to drill the well, and is valid until expiry of the licence, which will be no earlier than 30 June 2018.

 

 

United Oil & Gas Plc, Brian Larkin:

 

"We are very pleased to announce that we have secured a no cost option agreement with Swift Exploration Limited and Stelinmatvic Industries for a 24% working interest in Block 49/29c (licence P2264) which contains the Acle prospect and is located in the Southern North Sea.  This option agreement secures a material equity position in the acreage for our shareholders and we look forward to assisting the joint venture partners in their discussions with other potential licence partnersand the Oil and Gas Authority.

 

We've had an exciting start to the year, announcing two new deals along with our successful flow test on our Italian licence which is now on the road to production.  Our technical team, led by Jon Leather, have in a short period of time, delivered significant value for our shareholders

We continue to evaluate further opportunities to add to our portfolio and we will update shareholders as discussions develop further".

 

 

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]

 

 

 

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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