UOG to press on after assets deal collapses

United Oil and Gas (UOG) says it is “looking forward to progressing” a host of central North Sea assets after a deal to sell them fell through.

A binding sale and purchase agreement (SPA) was struck with Quattro Energy Limited in September to sell its PP2480 and P2519 licences, with the latter including the Maria discovery.

Completion of the deal hinged on approval from the industry regulator and Quattro completing a fundraising process.

But after the North Sea newcomer failed to stump up the cash needed, despite deadlines being extended, UOG opted to terminate the sale in March.

In its full year results for 2021, the company now says it plans to pursue “commercialisation opportunities and potential partnerships” for the assets.

Rising commodity prices and the licenses’ proximity to existing infrastructure make them “attractive investment” openings.

Oil and gas is back in favour for the minute as governments try to bolster domestic supply in light of

Russia’s invasion of Ukraine.

Soaring energy bills and inflationary fears also mean discussions about upping North Sea production are back on the cards.

UOG said: “During the first half of 2021 progress was made on the work programmes associated with the licences: new 3D seismic data was purchased and interpreted, with the initial mapping providing positive indications on the existing Maria, Brochel and Maol discoveries, and on the identified prospectivity, including Zeta, Dunvegan, and the deeper Jurassic targets.

“In September 2021, the company announced that it had entered into a binding sale and purchase agreement with Quattro Energy Limited to sell its UK Central North Sea Licences.

“Completion of the sale was conditional on receipt of approval from the Oil and Gas Authority (OGA) and Quattro completing a fundraising process. OGA approval was received, however, Quattro did not complete a fundraising process by the long stop date (February 28 2022).

“In March 2022 United terminated the SPA with Quattro and have retained the licences as part of the company’s portfolio.

“Both licences are located in a highly prospective area of the CNS, where there is significant development activity taking place.

“They are situated close to existing infrastructure as well as the Marigold and Yeoman discoveries, and the substantial Piper, MacCulloch and Claymore oil fields.

“There are low-cost commitments on both licences, and with rising commodity prices and renewed activity in the nearby area United believes they each contain attractive investment opportunities,” the company added.

“United look forward to progressing the commercialisation opportunities and potential partnerships the assets offer.”

Quattro was formed in April 2021 by North Sea stalwart Neill Carson, a founder of Ithaca Energy and i3 Energy.

Speaking after the UOG deal collapsed, Mr Carson said the outcome was “unfortunate”.

ATTRACTIVE OPPORTUNITY: UOG says it will now progress central North Sea licences.