Business
Sale of UOG Italia Srl for Eur2.165 million
Sale of UOG Italia Srl for Eur2.165 million.
About this update from United Oil & Gas Plc
[{"type":"text","content":"\n \n \n \n RNS Number : 0763I\n United Oil & Gas PLC\n 10 August 2021\n \n \n \n \n United Oil & Gas PLC / Index: AIM / Epic: UOG / Sector: Oil & Gas\n \n \n 10th August 2021\n \n \n United Oil & Gas PLC \n \n \n (\"United\" or the \"Company\") \n \n \n \n \n \n Sale of UOG Italia Srl for €2.165 million\n \n \n \n \n \n \n \n \n United Oil & Gas Plc (AIM: \"UOG\"), through its subsidiary, UOG Holdings plc, is pleased to announce that, as part of the Company's ongoing optimisation of its portfolio and capital allocation strategy, it has signed a conditional sale and purchase agreement with PXOG Marshall Limited, a subsidiary of Prospex Energy PLC, for the sale of 100% of the share capital of UOG Italia Srl for a consideration of 2.165 million in cash. The effective date of the transaction is 1 January 2021.\n \n \n Highlights:\n \n \n · \n \n United agrees to conditionally sell Italian asset to Prospex Energy PLC for €2.165 million\n \n \n \n · \n \n As per the terms of the deal, United will receive an immediate deposit payment of €108,235, with the remainder of the consideration payable on completion\n \n \n \n · \n \n The sale consideration is at a modest premium to the total assets held by UOG Italia at 31 December 2020 and removes any further development expenditure associated with the Selva development\n \n \n \n \n \n \n \n \n \n UOG Italia Srl holds a 20% non-operated interest in the Podere Gallina licence, in the Po Valley region of Italy, which contains the Selva gas development project. United acquired the interest in the licence via a farm in agreement with the operator Po Valley Energy Limited in July 2017. \n \n \n Prospex Energy plc is an AIM listed European focused energy company focused on natural gas opportunities and already holds a 17% interest in the Podere Gallina licence. \n \n \n The terms of the sale will see an immediate deposit payment of €108,235, with the remainder of the 2.165 million total consideration and any working capital adjustments payable on completion. The sale is conditional upon (1) receipt of approval \n of the Italian Authorities to the change of control of UOG Italia Srl and (2) Prospex completing a fundraising process. The transaction is expected to complete in late 2021. \n \n \n The divestment...