United Oil & Gas PLC (AIM:UOG) has extended the long stop date for the deal to sell its Central North Sea licences to Quattro Energy, from December 6 to February 28.
The extension allows additional time for deal conditions to be met, the company said in a statement.
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).
United previously described the transaction as part of its portfolio optimisation, a key part of its strategy.
It is expected to provide financial flexibility for the company to grow its low-cost production business in Egypt, the Greater Mediterranean area, and the Caribbean and Latin America.