United Oil & Gas plc said it had received US$1 million from state oil company Egyptian General Petroleum Corporation (EGPC) in relation to the Abu Sennan onshore licence.
ASSETS
The funds will leave United debt free while withdrawal from the concession, in which it held 22% working interest, is finalised.
The company anticipates the remaining receivable balance, equivalent to $500,000, over the coming months.
In January of this year, licence operator Kuwait Energy Egypt Ltd gave United a $3.8m default notice for Abu Sennan.
“We are pleased to have received the funds from EGPC as this enables us to settle our debt and move the business forward, focusing on our key assets of Jamaica and Waddock Cross,” said chief executive Brian Larkin.
“We will finalise settlement with our debt provider and issue a further update to shareholders shortly.”