United Oil & Gas plc has agreed a second deadline extension to the end of July for the sale of its North Sea licence containing the Maria discovery to Quattro Energy Ltd.
QUATTRO
The company initially signed the £5.7 million asset purchase agreement for P2519 with Quattro, dependent on financing, to be completed 16 April 2023.
The parties agreed to a one month extension until 17 May after Quattro had failed to find sufficient funds.
Quattro had planned to sell its own assets to Canadian company Jesmond Capital Ltd, which in turn needed to raise fund for the acquisition.
FUTHER EXTENSION
United today said that Quattro had started “a new financing process” estimated to take a minimum of two months to complete.
The parties had agreed a new long stop date of 31 July, although a further extension might be needed for regulatory approvals to transfer funds to United and the licence to Quattro.
United would continue to “support and facilitate Quattro in its funding process” but there could be “no guarantee” that the new process would succeed or that the sale would complete.
“The company continues to believe that the sale to Quattro on the current agreed terms remains the best option for United to realise value for its shareholders,” added United.
RE-EVALUATION
The company first began the sale in July 2021 of both licences, P2480 and P2519, to Quattro for up to £3.2 million, which was also extended before being cancelled.
In July 2022 of the Maria discovery was re-evaluated, leading to the increased sale price.