Sunday 25 August 2019

United sells two blocks in North Sea

Exploration

Brian Larkin, CEO of United Oil and Gas
Brian Larkin, CEO of United Oil and Gas

London-listed United Oil & Gas is to sell the rights to two blocks in the North Sea to Anasuria Hibiscus UK for up to $5m (€4.45m).

Anasuria Hibiscus is a wholly-owned subsidiary of Malaysia-headquartered Hibiscus Petroleum Berhad.

United was awarded the blocks - 15/18d and 15/19b - in the UK Oil and Gas Authority's 30th Licensing Round last August.

The blocks include the Crown Discovery, initially discovered by Conoco Philips in 1998.

United holds a 95pc equity interest in the two areas.

Under the deal, United and its minority partner Swift Exploration will immediately be paid $1m.

Subject to further milestones being achieved, an additional sum of up to $3m will be paid before the end of 2020.

A further $1m will then be paid once the field is in production.

In the event that these milestones are not reached, the licence will revert back to United and Swift.

Brian Larkin, CEO of United Oil and Gas, said the proceeds would support the growth of the company.

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