Last Update 12:12
Monday, 16 September 2019

United Oil and Gas to acquire Rockhopper Egypt for $16 million

Doaa A.Moneim , Wednesday 24 Jul 2019
Brian Larkin
CEO of United Oil and Gas, Brian Larkin
Views: 1409
Views: 1409

United Oil and Gas (PLC), an Irish-traded oil and gas exploration and development company, has announced a plan to acquire of Rockhopper Egypt Ltd from Rockhopper Exploration Plc in a deal worth $16 million.

The purchase, according to a statement issued on Wednesday, includes a non-operated 22 percent interest in the Abu Sennan concession in Egypt, as well as the existing assets of the business.

The transaction comprises a deposit of $0.3 million, payable on the signing of the sale and purchase agreement, while a further $15.7 million is payable upon completion of the transaction, according to the statement.

The balance sheet on the effective date includes cash of $0.65 million and receivables of $1.7 million, adding that the cash consideration for the transaction is $16 million, which is to be funded through a combination of prepayment finance, equity in United and the company's existing cash resources.

"This is a truly transformational deal for United. Not only will it deliver our first production, positive cash flow and significant reserves, but, it also offers very promising infill and exploration upsides. Having reviewed many opportunities in the last 18 months, Rockhopper Egypt was by far and away the most exciting opportunity and the best strategic fit for our business,” CEO of United Oil and Gas Brian Larkin said.

Larkin added that United has already built a world class portfolio of assets, combining high impact exploration in Jamaica and Benin, with low risk, low cost European assets in the UK and Italy. This diverse portfolio is already offering shareholders a range of options for value enhancement. The proposed acquisition announced today would deliver production and cash flow to this already impressive stable.

The balance of the cash component of the transaction cost, along with working capital, will be funded by a placing of new ordinary shares in United Company, along with the use of existing cash resources, including the proceeds from the Company's recently announced Crown divestment.

Rockhopper Exploration Plc has agreed to accept up to $5 million in consideration shares. Any consideration shares held by Rockhopper in United are subject to certain lock-up and orderly market disposal provisions for a period of up to 12 months from completion, according to Larkin.

Search Keywords:
Short link:


Ahram Online welcomes readers' comments on all issues covered by the site, along with any criticisms and/or corrections. Readers are asked to limit their feedback to a maximum of 1000 characters (roughly 200 words). All comments/criticisms will, however, be subject to the following code
  • We will not publish comments which contain rude or abusive language, libelous statements, slander and personal attacks against any person/s.
  • We will not publish comments which contain racist remarks or any kind of racial or religious incitement against any group of people, in Egypt or outside it.
  • We welcome criticism of our reports and articles but we will not publish personal attacks, slander or fabrications directed against our reporters and contributing writers.
  • We reserve the right to correct, when at all possible, obvious errors in spelling and grammar. However, due to time and staffing constraints such corrections will not be made across the board or on a regular basis.

© 2010 Ahram Online.