United Oil and Gas Plc pointed out that the option has been renewed to the end of April 2018 (was due to expire at the end of March) on the same terms whilst the company awaits the transfer of the assigned initial interest from the UK Oil and Gas Authority which is imminent.
The company have announced the extension of an option over the right to purchase an additional farmed interest in the Corallian Energy Limited interests in its southern UK oil and gas assets.
United O&G (UOG) announced on 16 January 2018 that it had entered into a farm-out agreement with Corallian, a private UK oil and gas appraisal and exploration company.
Under the agreement, UOG greed to acquire an initial 10% interest from Corallian in each of three licences held by a joint venture between Corallian (60%) as operator and Corfe Energy Limited (40%) offshore and onshore southern UK, by way of paying 13.33% of the costs associated with the Colter well, planned for the second and third quarters of 2018.
In addition, an option was granted under which UOG can exercise a right to purchase an additional 10% interest in these licences on the same terms as the Initial Farmed Interest – that is by paying Costs.
Brian Larkin, United Oil and Gas’ chief executive officer commented: “This license fits with our European strategy of building a portfolio driven by low risk, near-term activity. We continue to look to build value and the extension of the option on this exciting play is important for our shareholders.”