Kerman & Co advises United Oil & Gas Plc on the sale of its North Sea Blocks Licence
Kerman & Co is pleased to announce that it has advised its long standing client United Oil & Gas PLC (AIM: UOG) on all aspects (including obtaining regulatory consents) of the sale of its majority interest in the North Sea Blocks 15/18d and 15/19b (Licence P2366) to Anasuria Hibiscus UK Limited (Hibiscus).
The Licence was sold for a headline consideration of up to $5million with payments being made subject to certain milestones being achieved. The first payment of $100,000, with $95,000 of this total was paid to UOG by Hibiscus upon signing of the Sale and Purchase Agreement.
Completion of this sale has triggered a further payment of $900,000 payable to UOG and its minority partner Swift Exploration Ltd, with $855,000 of this figure payable to UOG.
Before the end of 2020, up to a further $3 million will be paid by Hibiscus, of which $2.85m will be payable to UOG subject to the key milestones being achieved.
In the event that these milestones have not been met, the Licence will revert back to UOG and Swift Exploration Ltd and the total amount of $1 million will not be repayable to Hibiscus. In addition, once the Crown discovery commences production, up to $1 million will be paid through an overriding royalty scheme.
Brian Larkin, CEO of United Oil & Gas commented: “The completion of this divestment is further proof of United’s ability to manage our portfolio in a way which delivers tangible returns for shareholders. We have, in a short space of time, added significant value to Licence P2366 and realised a significant return. With activity across our portfolio of multi-stage assets over the next twelve months, including the completion of the Rockhopper Egypt acquisition and the commencement of production at the Selva field in Italy, the momentum behind the business is set to continue and I look forward to providing further updates on our progress.”
David Quirke, CFO of United Oil & Gas commented: “Kerman & Co have been corporate legal advisors to United Oil & Gas plc since inception. To date the majority of advice has been of a corporate nature and in 2019 Una Deretic and the wider team have advised United on both a material acquisition ($16m Rockhopper Egypt) and the Crown divestment ($5m) to Hibiscus. We have found the Kerman & Co team to be very experienced in the M&A sphere, which is crucial to us as we don’t have an internal lawyer. They have been reactive to our needs and we have full confidence being advised on future M&A transactions by Una and the wider team.”
The Kerman & Co team was led by Una Deretic (Partner) and supported by Coral Yu (Associate solicitor).