United Oil & Gas PLC (AIM:UOG, FRA:1UO) agreed to sell its UK North Sea assets to Quattro Energy Limited for £3.2mln, with £2mln paid in cash up front.
The sale follows a strategic review with the proceeds providing flexibility to allow further growth in its low-cost production business in Egypt and the Greater Mediterranean area.
United noted that Quattro is a new company run by an experienced UK focussed management team, and the licences acquired from United will be its first step in building a portfolio of appraisal, development, and producing assets.
"With this transaction we continue to demonstrate our ability to actively manage our portfolio of assets to unlock significant return in value for our shareholders in a short period of time,” said chief executive Brian Larkin.
“In line with our stated strategy, the proceeds of this transaction will further strengthen our balance sheet to support the growth of the company".
The remainder of the deal consideration is contingent on approval of a field development plan.