United Oil & Gas plc said it had terminated the agreement with Quattro Energy Ltd to sell its licences in the UK Central North Sea.
AGREEMENT
The Oil and Gas Authority (OGA) awarded United licence P2480 in its the 31st Licensing Round in August 2019 and licence P2519 in the 32nd Licensing Round, in December 2020.
In September 2021, United entered into a binding sales and purchase agreement with Quattro to sell its 100%-owned licences P2480 and P2519 for up to £3.2 million ($4.4m).
United added that the Oil and Gas Authority (OGA) had granted approval and the company extended the long stop date to satisfy the SPA conditions to 28 February 2022.
“Although OGA approval was received, Quattro did not complete a fundraising process by this date.
“United has decided to terminate the SPA with Quattro.”
PREPAYMENT FACILITY
The company also announced an extension to the final maturity date on its existing prepayment facility from 30 September 2022 to 31 December 2023.
United said that the move significantly lowered the monthly repayments and provided additional flexibility for the Abu Sennan drilling programme and general working capital management.