United Oil & Gas has announced the successful placing of Rockhopper Exploration's 18.3% shareholding in United, with a small number of institutional investors and one private investor.
As announced on 28th February 2020, the consideration for United's acquisition of Rockhopper Egypt, was part financed by the issue of 114,503,817 new ordinary shares to Rockhopper, representing approx. 18.5% of United's enlarged ordinary share capital at the time. This shareholding was subject to certain lock-up and orderly market disposal for a period of up to 12 months.
Following an investor roadshow undertaken by management in recent days, United confirms that via its Brokers it has placed the Consideration Shares with a small number of institutional investors and one private investor in an oversubscribed placing.
The acquisition of Rockhopper Egypt, which includes a 22% non-operating interest in the Abu Sennan concession onshore Egypt, was transformational for United delivering the Company 2P reserves of 2.97 MMBOE. The Company's first drilling campaign on Abu Sennan was highly successful and resulted in the discovery of 50m of net oil pay in the ASH-2 well and a further discovery of over 120m of net oil pay in the ES-5 well. Both wells tested at high oil rates after drilling and are now already on production.
As a result of the placing, Rockhopper no longer has any interest in the Company's issued share capital and accordingly Mr. Stewart MacDonald, Rockhopper's representative, will step down from the Board of United immediately.
United Oil and Gas CEO Brian Larkin commented:
'I would like to thank our existing and new shareholders for their support. We are delighted to have attracted such strong support from institutional and private investors at a time of relative uncertainty within our sector; a clear vote of confidence in our assets, our executive team and in our business model.
'Today's oversubscribed placing strengthens the Company's shareholder base considerably with the introduction of institutional investors onto United's register.
'I would like to thank Rockhopper for their support and for the important role they played in facilitating our transformational acquisition of Rockhopper Egypt. They have been an excellent partner and enabled United to achieve this orderly transition. I would also like to thank Mr. Stewart MacDonald for his contribution to our Board.'