Quattro Energy Limited entered into a binding Asset Purchase Agreement to acquire UK Central North Sea Licence P2519 from United Oil & Gas Plc (AIM:UOG) for £5.7 million on January 17, 2023. Consideration comprises: Initial cash payment of £2.45 million at completion; An additional £1.0 million to be paid to United upon approval of an FDP (expected late 2023) for Block 15/18e; and Contingent bonus payments of up to £2.25 million upon reaching gross production thresholds from the field of three, four and five million barrels. The completion of the APA is subject to a number of pre-conditions including the North Sea Transition Authority approval to the Licence acquisition and Quattro having available an amount equal to the completion payment of £2.45 million in cash.

It is anticipated that completion of the APA will be within 90 days from this announcement. Una Deretic of Armstrong Teasdale LLP acted as legal advisor and Roland Cornish of Beaumont Cornish Limited acted as financial advisor to United Oil & Gas Plc. The long stop date for the satisfaction of the APA conditions was 16th April 2023.

The parties to the APA have agreed an extension of this long stop date to the 17th May 2023 to allow additional time for the APA conditions required for completion to be satisfied. A further update will be provided to the market in due course. As on May 18, 2023 the Company has agreed to grant a further extension of the long stop date to 31 July to provide sufficient time for Quattro to meet the funding requirement under the APA.

As of August 8, 2023, the Company has agreed to grant a further extension of the long stop date to September 30, 2023 to provide sufficient time for Quattro to meet regulatory approvals to enable the transfer of funds to United, and the Licence assignment to Quattro, with such extension to be automatically granted on the satisfaction of the Quattro funding condition being met. As of October 4, 2023, The funding condition under the asset purchase agreement has not been met by the expiry of the long stop date on September 30, 2023. Following the receipt by United from Quattro of an update on its funding process and a formal request to extend the long stop date, United Oil & Gas and Quattro have agreed an extension of the long stop date in the asset purchase agreement to October 27, 2023.