24th Jul 2014 11:26
LONDON (Alliance News) - Northern Petroleum PLC Thursday said it has agreed to sell all of its UK licences and assets to UK Oil & Gas Investments PLC in a deal worth GBP1.5 million.
Further amounts up to a maximum of GBP50,000 may be payable in respect of net working capital of the assets.
Northern Petrolum's oil and gas licence interest consists of a 10% and 5% working interest in the producing Horndean and Avington Oilfields, respectively, in the Weald Basin, both of which are operated by IGas Energy PLC.
It also includes a 50% interest in two further exploration licences in the Weald Basin, and a 65% interest in the offshore licence P1916 which flanks the western part of the Isle of Wight.
In the year ended December 2013, the licences' average daily share of production amounted to approximately 20 barrels of oil, while revenue and gross profit amounted to EUR591,000 and EUR345,000, respectively.
Northern Petroleum shares were quoted up 0.5% at 22.76 pence Thursday, while UK Oil & Gas shares were flat at 1.10 pence.
By Anthony Tshibangu; [email protected]; @AnthonyAllNews
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Related Shares:
UK Oil & GasIGAS.LNOP.L