United Oil & Gas PLC on Thursday said it has agreed to extend the long stop date of its sale of the UK Central North Sea Licence P2519 to Quattro Energy Ltd.
The London-based oil and gas company with projects in Egypt, Italy and the UK said it has extended the long stop date to July 31 in order to provide Quattro with sufficient time to meet the funding requirement of the purchase agreement.
It has also agreed that a further agreement may be required in order to enable the completion of the sale, adding that it will continue to support Quattro in the funding process.
The new extension comes after a one-month extension was granted to Quattro in April.
United Oil noted that it has reviewed potential alternative buyers, but ‘continues to believe that the sale to Quattro on the current agreed terms remains the best option for United to realise value for its shareholders’.
United Oil & Gas announced the APA with Quattro in late January to sell licence P2519 for a maximum consideration of up to £5.7 million.
United Oil shares fell 9.0% to 1.36 pence each in London on Thursday afternoon.
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