31st Oct 2024 14:26
(Alliance News) - United Oil & Gas PLC on Thursday revealed it has almost completed its withdrawal from Egypt as it looks to focus on advancing its core projects.
The AIM-listed listed oil and gas firm revealed the completion of all of the necessary paperwork to withdraw from its 22% stake in the Abu Sennan Concession, which is part of the Western Desert region of Egypt.
It noted that it still requires formal approvals from the Egyptian General Petroleum Corp and the Minister for the Deed of Assignment, but expects to receive them in due course.
Shares in the United jumped 13% to 0.16 pence on Monday afternoon in London.
United will transfer USD220,000 to the non-default parties of Kuwait Energy Egypt Ltd and Global Connect Ltd to satisfy the outstanding cash calls related to the concession.
This will come from its net receivables balance of USD840,000 due from the EGPC, with United owed the outstanding balance of USD620,000.
The firm noted the continuation of positive engagements with the EGPC regarding the recovery of these funds.
United stated that the withdrawal from Egypt allows the firm to focus on progressing its core projects, "particularly the Jamaican work programme and ongoing farmout process".
United Chief Executive Officer Brian Larkin said: "We are pleased to have reached an agreement with Kuwait Energy and Global Connect, allowing us to withdraw from the Abu Senna concession.
"Our continued discussions with EGPC regarding to the outstanding receivables are also encouraging, and we expect resolution shortly. We wish our former joint venture partners all the best in their future endeavours.
"We can now focus our efforts on growth opportunities, particularly in Jamaica. Our farmout discussions are progressing well, and our team is making excellent headway with selected parties. We look forward to providing further updates to shareholders shortly."
By Christopher Ward, Alliance News reporter
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