United Oil & Gas’ acquisition of Rockhopper Egypt on track to close by 4Q2019
M&A WATCH- United Oil & Gas’ acquisition of Rockhopper Egypt “progressing well”: Rockhopper Exploration’s sale of its Egypt business to Irish energy company United Oil & Gas is on track to be completed by the end of 4Q2019, Rockhopper said in a statement yesterday. Rockhopper and United had signed a USD 16 mn share purchase agreement in July, which would see the Irish company acquire a non-operating 22% interest in the onshore Abu Sennan oil concession, among other assets. The agreement “will be satisfied” once United makes a cash payment of at least USD 11 mn. BP had previously agreed to provide USD 8 mn to partially 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 and contains seven operational fields with 17 producing wells. Current gross production has recently been reported by Rockhopper Egypt at over 5.1k boe/d. 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.