United Oil & Gas chief targets growth in Europe
United Oil & Gas (UOG) which was formed in 2015, listed on the main market of the London Stock Exchange last year and is led by a team formerly of African-focused Tullow Oil.
Speaking to Scotland on Sunday, chief executive Brian Larkin outlined the firm’s strategy, with its focus a multi-stage portfolio of low-risk European development and appraisal assets, underpinning the funding of higher-risk activity.
Its European interests include the Podere Gallina Licence in Italy, with a well that could generate net cashflows to the firm of about $2.5 million (£1.9m) a year, according to chief operating officer Jon Leather. Also on the list is the Wessex Basin off the south coast of England. In the North Sea, the firm was awarded two blocks in the Oil & Gas Authority’s 30th licensing round that contain the Crown oil discovery. The award was a real “landmark” in terms of the company’s standing in the marketplace, Leather added.
UOG has raised nearly £10m via placings, and is “well-funded” for the next 18 months. And it acknowledged that Jamaica, where it has an interest in the Walton-Morant Licence, brings higher risk, but also “absolutely transformational” potential.
Larkin noted the target of an “additional, significant, game-changing” acquisition into the portfolio, with possibilities mainly tying in more with UOG’s European, low-risk activities.