United Oil & Gas PLC (AIM:UOG, FRA:1UO) is advancing its deal to sell its North Sea licences, signing a binding agreement with Quattro Energy.
The deal, announced initially in August, sees United sell a pair of North Sea licences (P2480 and P2519) for up to US$3.2mln, comprising US$2mln of cash upfront and a contingent ‘uplift’ payment of US$1.2mln subject to a project having a field development approved by the UK’s Oil & Gas Authority (OGA).
The transaction is now subject to OGA approval and it is anticipated it will close in the fourth quarter of 2021.
"The sale of United's Licenses in the North Sea demonstrates our commitment to portfolio optimisation, which forms a key part of the group's strategy,” said chief executive Brian Larkin.
“The transaction proceeds will provide financial flexibility for the company to grow its low-cost production business in Egypt and the Greater Mediterranean area, complemented with selected high impact exploration opportunities in the Caribbean and Latin America."