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United Oil and Gas PLC - UOG - Update on Corallian Farmout Agreement

RNS Number : 5364J

United Oil & Gas PLC

03 April 2018

 

                                                                                                                                          [3] April 2018

 

United Oil & Gas Plc

Corallian farmout agreement

Update on Additional Farmed Interest

 

United Oil & Gas Plc ("UOG", "United" or the "Company"), the London Stock Exchange listed oil and gas exploration and development company, is pleased to announce the extension of an option over the right to purchase an additional farmed interest in the Corallian Energy Limited ("Corallian") interests in its southern UK oil and gas assets. 

 

 

On 16 January 2018 United announced it had entered into a farmout agreement with Corallian Energy Limited, a private UK oil and gas appraisal and exploration company.  Under this agreement United agreed to acquire an initial 10 per cent. interest from Corallian in each of three licences held by a joint venture between Corallian (60%) as operator and Corfe Energy Limited ("Corfe") (40%) offshore and onshore southern UK ("Initial Farmed Interest"), by way of paying 13.33 per cent. of the costs associated with the Colter well, planned for Q2/Q3 2018 ("Costs"). In addition, an option was granted under which United can exercise a right to purchase an additional 10 per cent. interest in these licences ("Additional Farmed Interest"), on the same terms as the Initial Farmed Interest (that is by paying Costs).    

 

This option expired at the end of March 2018, but has been renewed to the end of April 2018 on the same terms whilst the company awaits the transfer of the assigned initial interest from the UK Oil and Gas Authority which is imminent.

 

United Oil & Gas Plc, Brian Larkin

 

"We look forward to the drilling of the Colter well. This license fits with our European strategy of building a portfolio driven by low risk, near term activity. We continue to look to build value and the extension of the option on this exciting play is important for our shareholders"

 

 

This announcement contains inside information for the purposes of Article 7 of Regulation (EU) 596/2014

 

Appendix 1

The Licence

Licence No.

Licence Date

JOA Date

Current Licensees

Current Percentage Interest

P1918

14/06/2012

 05/02/2013

Corallian Energy Limited

60%

 

 

 

Corfe Energy Limited

40%

PEDL330

15/09/2016

None

Corallian Energy Limited

60%

 

 

 

Corfe Energy Limited

40%

PEDL345

15/09/2016

None

Corallian Energy Limited

60%

 

 

 

Corfe Energy Limited

40%

 

Part II

The Farmed Interest

Party

Current Percentage Interest

Farmed Interest

Future Percentage Interest

Corallian Energy Limited

60%

10-20% to United

40-50%

United Oil & Gas plc

nil

10-20% from Corallian

10-20%

 

 

Editor's Note:

 

United Oil & Gas plc (UOG) is listed on the main market of the London Stock Exchange.  UOG was established to explore, appraise and develop low risk assets in Europe and North Africa and to develop higher risk, higher impact exploration projects in Latin America and Africa.

 

The following table outlines the Company's current licences:

 

Country

Licence

Operator

United Holding

Italy

Podere Gallina Licence

Po Valley Energy

20%

United Kingdom

Waddock Cross Field

Egdon Oil Plc

26.25%

United Kingdom

PL090 Exploration

Egdon Oil Plc

18.95%

United Kingdom

P1918*

Corallian

10%**

United Kingdom

PEDL 330

Corallian

10%**

United Kingdom

PEDL 345

Corallian

10%**

Jamaica

Walton-Morant*

Tullow Oil plc

20%

*Offshore

** Option to acquire a further 10%

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