Gulf Oil and Gas accountACCOUNT

Sale of UK Assets for £1.5 million

Source: 7/24/2014, Location: Europe

Northern Petroleum has signed sale and purchase agreements to sell the Company's interests in all of its UK licences and assets for £1.5 million to UK Oil & Gas Investments PLC ("UKOG"). Completion of the sale is subject to the approval of UKOG becoming an operator for certain licences by the Department of Energy and Climate Change and the completion of an intra group transfer of certain asset interests within Northern Petroleum on or before 31st October 2014.

The consideration of £1.5 million is payable with a minimum of £1 million in cash and the remainder in either cash or UKOG ordinary shares at a price of 1.0938 pence per ordinary share at UKOG's election. In the event that Northern Petroleum receives ordinary shares in UKOG, the Company will consider the best way to monetise the holding in an orderly manner.

The UK assets and licences comprise the 10 and five per cent minority interests in the Horndean and Avington producing fields respectively, 50 per cent interests in the Markwells Wood and Baxters Copse discoveries, and a 65 per cent interest in a licence offshore the Isle of Wight. Net production to the Company during 2013 averaged approximately 20 barrels of oil per day and contributed €591,000 of revenue and €345,000 of gross profit to the Company for the 12 months ended 31 December 2013. The book value of the UK assets in the consolidated accounts for the Group as at 31 December 2013 was €300,000 and stated proven and probable reserves were 60,000 barrels of oil. The consideration from the sale will be reinvested in Northern Petroleum's production and redevelopment project in north west Alberta, Canada.

Keith Bush, Chief Executive Officer, commented:
"The sale of the UK portfolio allows us to focus additional time and financial resource on operations that provide the best opportunity for value growth in a reasonable time frame.

"The Company continues to move forward with its production led growth strategy with operations on the three summer wells in Alberta due to commence in August. We expect the results of the wells to further de-risk the potential of the whole Albertan redevelopment and allow us to achieve our forecast year end exit production rate of 500 barrels of oil per day."

Acquisitions and Divestitures News in United Kingdom >>

Uganda >>  5/28/2020 - Tullow Oil plc announces that CNOOC Uganda Limited (CNOOC) has informed both Tullow and Total that it will not pre-empt the sale of Tullow's assets in...
United Kingdom >>  5/26/2020 - Reabold, the AIM investing company which focuses on investments in upstream oil and gas projects, is pleased to announce the conditional acquisition o...

United States >>  5/26/2020 - Diversified Gas & Oil PLC, the U.S. based owner and operator of natural gas, natural gas liquids, and oil wells as well as midstream assets, confirms ...
Canada >>  5/25/2020 - TC Energy Corporation has completed the sale of a 65 per cent equity interest in the Coastal GasLink Pipeline Project (Coastal GasLink or the Project)...

Israel >>  5/25/2020 - Delek Group (DGRLY) announces that it signed together with Delek Energy Systems Ltd (“Delek Energy”) (“the Sellers”) an agreement with a third party (...
Indonesia >>  5/22/2020 - Coro Energy plc is pleased to announce that all necessary Indonesian regulatory approvals for the transfer of title of the 15% direct interest in the ...

Related Categories: Accounting, Statistics  Acquisitions and Divestitures  Asset Portfolio Management  Economics/Financial Analysis  General  Industrial Development  Insurance  Investment  Mergers and Acquisitions  Risk Management 

Related Articles: Accounting, Statistics  Acquisitions and Divestitures  Asset Portfolio Management  Economics/Financial Analysis  General  Insurance  Investment  Mergers and Acquisitions  Risk Management 

United Kingdom Oil & Gas 1 >>  2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 | 13 | 14 | 15 | 16 | 17 | 18 | 19 | 20 | 21 | 22 | 23 | 24 | 25 | 26 | 27 | 28 | 29 | 30 | 31 | 32 | 33 | 34 | 35 |

More News

Related Links

Gulf Oil and Gas
Copyright © 2020 Universal Solutions All rights reserved. - Terms of Service - Privacy Policy.