United Oil & Gas looks to acquire Rockhopper Egypt for USD 16 mn
M&A WATCH- United Oil & Gas wants to buy Rockhopper Egypt for USD 16 mn: Irish energy company United Oil & Gas has proposed to Rockhopper Exploration that it acquire Rockhopper’s Egypt business for USD 16 mn, the company said in a statement. Rockhopper Egypt owns a non-operating 22% interest in the onshore Abu Sennan oil concession, among other assets. BP has agreed to provide USD 8 mn to fund the acquisition after it entered an offtake agreement for United’s future oil and gas production.
The portfolio: The Abu Sennan concession is located in the Western Desert region and contains seven operational fields with seventeen producing wells. Current gross production has recently been reported by Rockhopper Egypt at over 5.1k boe/d, the company said. In addition to the seven fields in production, the Abu Sennan concession also contains a large exploration area with a significant prospect potential. Kuwait Energy holds a 25% operating interest in the concession, while Global Connect (25%) and Dover Investments (28%) are the other stakeholders.