United Oil & Gas plc is reviewing its cost structure as it awaits $620,000 in receivables from Egypt and talks suspend on the offshore Jamaica farm-out until the new year.
EFFORTS
Chief executive Brian Larkin met his counterpart of national oil company Egyptian General Petroleum Corporation (EGPC) regarding the outstanding payment from the Abu Sennan licence, which is expected “imminently”.
“While funds have not yet been received, discussions remain active, and the company is taking all necessary steps to secure prompt resolution,” said United.
Discussions with “select parties” and exploration of potential interest from others for the Walton Morant block are expected to progress in 2025.
The company added that in the meantime it was taking a “prudent” approach to costs.
“We are currently reviewing our cost structure and we plan to implement significant reductions effective immediately.
“As part of this effort, all costs will be cut to a bare minimum.
“These measures are being taken in order to maximise existing cash balances in case there are further delays in receivables from EGPC and until a potential farm out has progressed”.
Mr Larkin said that United would “significantly” reduce its cost base to absolute essential outgoings.
This would maximise the chances of securing a farmout within the its “limited funds and timeframe”.