Business
United proposed sale of Crown Discovery
United proposed sale of Crown Discovery.
About this update from United Oil & Gas Plc
[{"type":"text","content":"\n \nRNS Number : 8479F United Oil & Gas PLC 17 July 2019 \n\nUnited Oil & Gas PLC / Index: AIM / Epic: UOG / Sector: Oil & Gas\n17 July 2019\nUnited Oil & Gas PLC (\"United\" or the \"Company\") \n \nUnited proposed sale of Crown Discovery \n \n· United agrees to sell North Sea Blocks 15/18d and 15/19b (\"License P2366\") to Anasuria Hibiscus UK Limited\n· Consideration of up to US $5 million to be paid for North Sea Licence \n \nUnited Oil & Gas Plc (AIM: \"UOG\"), the AIM listed oil and gas exploration and development company, is pleased to announce the signing of non-binding Heads of Terms on an agreement to sell North Sea blocks 15/18d and 15/19b (\"the Blocks\") to Anasuria Hibiscus UK Limited for a headline consideration of up to $5million.\nUnited was awarded the North Sea blocks 15/18d and 15/19b, in the UK Oil and Gas Authority (\"OGA\") 30th Licencing Round, in August 2018, and holds a 95% equity interest. The blocks include the Crown Discovery, initially discovered by Conoco Philips in 1998. Low-cost but important data analysis, carried out by the United team, has added significant value to the licence since acquisition. \nThe terms of the sale will see an immediate and non - refundable payment of US $1 million at SPA completion, of which US $0.95 million will be payable to United and US $0.05 million will be payable to United's minority partner Swift Exploration Ltd. Subject to further milestones being achieved, an additional sum of up to US $3 million will be paid before the end of 2020 (US $2.85 million net to United). A further US $1 million (US $0.95 million net to United) will be paid once the field is on production. In the unlikely event that these milestones are not reached, the licence will revert back to United and Swift Exploration Ltd. \nThis deal is subject to completion of satisfactory due diligence, including geological, legal and financial due diligence, regulatory OGA approval and definitive documentation.\nBrian Larkin CEO, United Oil and Gas PLC: \n\"Our primary goal as a management team is to deliver value for our shareholders. The work of our technical team in attaining and developing this licence has delivered an excellent outcome for the Company, allowing us, on completion, to realise a significa...