United Oil & Gas plc has completed its exit from the Abu Sennan joint venture licence, onshore Egypt.
JAMAICA
The company said it had finalised all paperwork for the withdrawal from its 22% working interest, effective 1 January 2024.
Formal approval from state oil company Egyptian General Petroleum Corporation and the Minister for the Deed of Assignment is expected in “due course”.
United had previously faced problems in repatriation of funds and, despite trying to sell its interest, received a default notice in January for US$3,822,143 outstanding cash calls.
In April, the company received $1m from EGPC in relation to Abu Sennan.
United has agreed to transfer $220,000 to the non-defaulting parties of Kuwait Energy Egypt Ltd and Global Connect Ltd from its receivables balance of approximately $840,000 due from EGPC.
The company still awaits net amount of an outstanding $620,000.
Exit from Egypt will allow United to focus on its core projects, especially the farmout process for the 22,400km2 Walton Morant licence, offshore Jamaica.
Chief executive Brian Larkin added: “We are pleased to have reached an agreement with Kuwait Energy and Global Connect, allowing us to withdraw from the Abu Senna concession.
“Our continued discussions with EGPC regarding to the outstanding receivables are also encouraging, and we expect resolution shortly.”
The company also has a 26.24% working interest in the Waddock Cross onshore oil field, operated by joint venture partner Egdon Resources plc.