United Oil & Gas (UKOG) said on July 28 it had signed a heads of agreement to sell licences P2480 and P2519 in the UK North Sea to fellow London-based player Quattro Energy for up to £3.2mn ($4.4mn).
UKOG acquired 100% interests in licences P2480 and P2519 through licensing rounds in August 2019 and December 2020 respectively. P2519 contains the Maria oil discovery, UKOG said, noting it had undertaken low-cost data analysis that had added "significant value" to the licences since acquiring them.
The transaction is on track for closure by September 30. Quattro, which was set up by North Sea executives in April, will pay £2mn on completion and a further £1.2mn if a development plan for Maria is approved. Quattro sees the deal as its first step in building an upstream portfolio in the North Sea.
UKOG said the transaction showed it could "unlock significant return in value for [its] shareholders within a short period of time." The company's primary focus is Egypt, and it also works in Italy and Jamaica.
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