United Oil & Gas plc has agreed a further deadline extension and a non-refundable deposit for the £5.7 million sale of its UK central North Sea licence P2519 containing the Maria discovery.
REVISED TERMS
The company had been in advanced talks with purchaser Quattro Energy Ltd to extend the long stop date for the sale after all conditions were not met by the previous long stop date of 31 July 2023.
Quattro is under acquisition by Jesmond Capital Ltd which needs to raise funds for the purchase.
United said that the sale to Quattro remained the “best option at this time.”
The company has received a US$100,000 non-refundable deposit from Quattro and a rescheduling of total payments along with setting the new extension to 30 September 2023.
The parties also agreed that a further extension may be required to include regulatory approvals to transfer the funds to United and the licence to Quattro.
United added that revised schedule of consideration payments would support Quattro’s funding process and “significantly increase the executability of the transaction”.
In addition to the no-refundable deposit, £1m initial cash payment to United is included in contingent bonus payments, resulting in £1.45 million, less the non-refundable deposit due on completion.
There is no change to the additional £1m to be paid to United upon approval of an field development plan for block 15/18e containing Maria.
Quattro will also make contingent bonus payments of up to £3.25m (previously £2.25m) upon reaching gross production thresholds from the field of three, four and five million barrels