British independent oil and gas exploration and development start-up United Oil & Gas (UOG) has completed the sale of North Sea blocks 15/18d and 15/19b to Anasuria Hibiscus UK.
The blocks include the Crown Discovery, which was initially discovered by Conoco Philips in 1998. The completion of the $5m transaction triggered a $900,000 payment to the sellers, UOG and its minority partner Swift Exploration.
UOG now gets $855,000 in addition to the $100,000 previously paid on signing of the agreement in October 2019. A further $3m will be paid by Hibiscus by the end of 2020 if milestones are achieved, with an additional $1m as royalty once the Crown discovery on the blocks goes online.
If the production milestones are not achieved, the licence will go back to UOG and Swift Exploration, if Hibiscus exercises its option not to pay the $3m and the $1m royalty payments.
United Oil and Gas CEO Brian Larkin said: “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 12 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”.
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In July 2019, UOG initially signed the non-binding heads of terms on an agreement to sell North Sea blocks 15/18d and 15/19b to Anasuria Hibiscus.