United Oil and Gas shares were up 1.9% to 2.6p in late afternoon trading on Monday after the company announced the sale of its UOG Italia Srl asset to PXOG Marshall Limited for €2,164,701.
United Oil and Gas sold 100% of the share capital for its Italian asset following final approvals from the national authorities.
The company noted that the UOG Italia Srl asset currently holds a 20% non-operated interest in the Podere Gallina licence, which also contains the Selva gas development project.
United confirmed that it received a completion payment of €2,190,966 which included the balance of the consideration, alongside a working capital adjustment from the effective date of €134,500 less the capital deposit of €108,235, which was reportedly received on 10 August last year.
The deal marks United’s exit from Italian operations, and the group will consequently no longer be liable for its share of the Selva gas development capital expenditure worth approximately €800,000.
United said that the finance from the agreement will be used to strengthen its balance sheet, which in combination with the higher oil prices, places the company in a strong position going forwards in 2022.
“We are pleased to have completed the sale of the Italian asset with our joint venture partner on the licence, Prospex Energy. The proceeds of this transaction along with other divestments strengthen our balance sheet to support our growth strategy,” said United CEO Brian Larkin.
“We have re-focused our portfolio on our core areas which provides us with a platform for organic growth and also a base from which we can evaluate further growth opportunities in 2022 and beyond. We wish Prospex Energy and all stakeholders of the Selva project well during its development”.