United Oil & Gas plc has signed a non-binding heads of terms agreement to sell its UK Central North Sea licences P2480 and P2519 to newly formed Quattro Energy Ltd for up to £3.2 million.
REVIEW
United holds a 100% equity interest in each, with licence P2519 including the Maria discovery in block 15/18.
The company said it had conducted low-cost but important data analysis which had added “significant value” to the licences.
United conducted a strategic review of its portfolio before deciding to sell the licences which will see the company leave the UK North Sea.
Proceeds will be used to grow its production business in Egypt and the Greater Mediterranean area, the Caribbean and Latin America.
Chief executive Brian Larkin added that the deal showed the company’s ability to manage its portfolio actively to unlock significant return in value for shareholders in a short period of time.
QUATTRO ENERGY
Quattro Energy Ltd, co-founded by its chief executive Jens Pace, executive chairman Neill Carlson and chief financial officer Bradley Gunn, was incorporated in April 2021 in the UK.
The company aims to build a portfolio of oil and gas appraisal, development, and producing assets.
The directors have collectively raised more than $1.5bn in capital over 20 years.
PAYMENTS
Quattro will pay an initial £2m on completion of the transaction and an additional £1.2m following approval for a field development plan for block 15/18.
The deal, which is subject to due diligence, documentation and OGA approval, is expected to be completed by 30 September 2021.
United was awarded licence P2480, in the UK Oil and Gas Authority 31st Licensing Round in August 2019 and licence P2519 in the 32nd Licensing Round, in December 2020.
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