Kerman & Co advises United Oil & Gas Plc with its US$16m acquisition of Rockhopper Egypt Pty Ltd from Rockhopper Exploration plc
Kerman & Co advises long standing client, United Oil & Gas PLC (AIM: UOG), an AIM listed oil and gas exploration, development and production company, on its acquisition of Rockhopper Egypt Pty Ltd (“Acquisition”) from Rockhopper Exploration plc which includes a 22% non-operating interest in the producing Abu Sennan concession, onshore Egypt, where production averaged 7,900 boepd in the first half of February 2020 (over 1,700 boepd to UOG’s net working interest).
The consideration for the Acquisition was US$16 million (approximately £12.2 million) and was funded by:
- the issue to Rockhopper Exploration plc of 114,503,817 Consideration Shares at 3 pence per Ordinary Share;
- a pre-payment financing structure of US$8 million provided by BP (‘the BP Facility’); and
- the issue of 150,616,669 Placing Shares at 3 pence per share with certain existing and new investors (“Placing”) and 8,419,498 Subscription Shares also at 3 pence per share (“Subscription”) raising a total of US$6.25 million (approximately £4.8 million) gross.
This Acquisition constituted a reverse takeover under Rule 14 of AIM Rules.
We also advised UOG on the BP Facility together with the Placing, the Subscription and admission of the enlarged group to trading on AIM.
This deal was nominated for the “Innovation of the Year” award at the 2019 Oil & Gas Council awards.
Brian Larkin, CEO of United Oil & Gas PLC commented: “Completing the Acquisition of Rockhopper Egypt represents a significant milestone in the development of United, establishing the company as a full-cycle E&P company, and putting us in a strong position for further growth.”
Joan Yu, Head of Capital Markets at Kerman & Co commented: “We are delighted to have advised the United Oil & Gas team on this strategic acquisition for them and we look forward to working with UOG in delivering their exciting growth plans.”
The Kerman & Co team was led by Joan Yu (Partner and Head of Capital Markets) and included Una Deretic (M&A Partner), Peter Kohl (Partner and Head of Corporate), Peter Wilkie (Solicitor), Coral Yu (Associate solicitor) and Philippa Kwok (Paralegal).