United Oil & Gas PLC (LON:UOG) has told investors that an outstanding milestone payment attached to last year’s sale of the Crown asset is now expected in the second quarter of 2021.
Crown was sold to Anasuria Hibiscus, a subsidiary of Malaysian firm Hibiscus Petroleum Berhad, last December and, at that time, a US$3mln payment (US$2.85mln net to United) was anticipated before the end of 2020.
READ: United counts down to new Egypt wells
The payment is triggered by the approval of a field development plan for Marigold - a project that now includes Crown - and amidst the coronavirus (COVID-19) pandemic this milestone has slipped to 2021.
It is now expected that the field development plan will be submitted to the UK's Oil and Gas Authority before year-end, but the final investment decision and approval are expected by the end of March.
"The short delay in this FDP Approval is understandable under the current circumstances where project timelines are being impacted by COVID-19 and does not have any impact on United's plans to recommence drilling in Egypt which will be funded from operating cashflow," said Brian Larkin, United chief executive in a statement.