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United leaps ahead with Rockhopper Egypt acquisition to become "full cycle oil and gas company"

"We are confident that when we are re-admitted to AIM, later this year, we will have achieved our goal of creating a full cycle oil and gas company with exceptional prospects for growth,” said chief executive Brian Larkin

United Oil & Gas PLC -

United Oil & Gas PLC (LON:UOG) announced today that Rockhopper’s partner’s in Egypt have waived their ‘pre-emption’ rights to acquire the subsidiary instead of United.

The AIM-listed energy company announced today that Rockhopper’s joint venture partners in its Egyptian assets including the Abu Sennan concession have all waived pre-emption rights allowing the deal to move forward with an expected completion date on 1 January.

READ: United Oil & Gas lands four blocks in second successful North Sea round

It means that United can now proceed with the proposed US$16mln transaction which is being funded via a BP prepayment financing (worth US$8mln), United’s existing cash resources and a US$5mln share placing.

The primary asset in the deal is Rockhopper’s 22% interest in the Abu Sennan concession, which produces 5,100 barrels of oil per day according to United.

The deal constitutes a reverse takeover, and United’s shares are presently suspended.

United said it now intends to go ahead with the equity placing in the second half of October and early November, to be followed by readmission to trading on AIM and Egyptian government approval.

Chief executive Brian Larkin called it an “important milestone” for the energy company, which started up in 2015, saying: "We are confident that when we are re-admitted to AIM, later this year, we will have achieved our goal of creating a full cycle oil and gas company with exceptional prospects for growth.” 

“Our portfolio will include high impact exploration assets, low risk development opportunities, discoveries which are near to production and producing assets which show considerable potential for further reserves,” said Larkin.

United also confirmed that it is selling interests in two oil and gas blocks in the North Sea including the Crown Discovery to Anasuria Hibiscus for a total of US$5mln, with the first $1mln to be paid following approval from the Oil and Gas Authority.

Quick facts: United Oil & Gas PLC

Price: 4.05 GBX

AIM:UOG
Market: AIM
Market Cap: £14 m
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