Brian Larkin, United Oil & Gas’ (LON:UOG) chief executive, says the deal to buy Rockhopper Exploration’s Egyptian assets is the transformational deal it promised.
It was easily the best deal it saw and United looked at a lot, he says
At a cost of US$16mln, United gets net production of 1,100 barrels per day with significant exploration upside.
BP, meanwhile, has come on board as a finance partner and is putting up US$8mln through what Larkin describes as novel financing.
Rockhopper is taking a stake in United through the transaction.
Larkin adds: “We have worked in Egypt before, we like the quality of the oil, we like the fiscal terms and the asset is onshore. while the receivable issue in Egypt is also all but resolved.
“The deal makes United a different company, with a wider footprint and significant production.
“ All round we are a bigger entity and next year we will be bigger again.”