Further to the announcements of 7 April 2022 and 10 August 2021 United Oil & Gas PLC has announced that the sale of 100% of the share capital of UOG Italia Srl to PXOG Marshall Limited, a subsidiary of Prospex Energy PLC for a consideration of 2,164,701 has now completed, having received the final approvals from the Italian Authorities. UOG Italia Srl holds a 20% non-operated interest in the Podere Gallina licence, which contains the Selva gas development project.
United has received the completion payment of €2,190,966, which is the balance of the consideration plus a working capital adjustment from the effective date of €134,500 less the deposit of €108,235 which was received on 10 August 2021.
Completion of the transaction means that United will exit activities in Italy and therefore will no longer be liable for its share of the Selva gas development capital expenditure of approximately €800,000.
The proceeds from this transaction and the other portfolio management initiatives further strengthen the balance sheet. This combined with higher oil prices, means that United is well placed to capitalise on building scale through its current portfolio and new business opportunities.
“We are pleased to have completed the sale of the Italian asset with our joint venture partner on the licence, Prospex Energy. The proceeds of this transaction along with other divestments strengthen our balance sheet to support our growth strategy. We have re-focused our portfolio on our core areas which provides us with a platform for organic growth and also a base from which we can evaluate further growth opportunities in 2022 and beyond. We wish Prospex Energy and all stakeholders of the Selva project well during its development,”United’s Chief Executive Officer, Brian Larkin commented.
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