Corporate M&A

Rockhopper Exploration Divests its 18.3% Stake in UOG

By Isha Makkar
August 28, 2020
a minute read
Gas Flare

AIM-listed Rockhopper Exploration Plc has divested its entire 18.3% stake in United Oil & Gas Plc (UOG), for total gross proceeds of approximately £3.0 million (US$4.0 million). The shares have been sold to a small number of institutional investors and one private investor in an oversubscribed placing.

As part of the placing, Rockhopper disposed of a total of 114,503,817 ordinary shares of UOG at an average price of 2.66 pence per share, which represents a discount of 6.7% to the company’s closing price on August 26th. As a consequence, Mr. Stewart MacDonald (Rockhopper’s representative) will step down from the UOG Board of Directors immediately.

In July last year, UOG entered into an agreement to acquire Rockhopper’s subsidiary, Rockhopper Egypt Pty Ltd., for a total consideration of US$16.0 million. This consideration consisted of approximately US$11.5 million in cash and a stock consideration of US$4.5 million, which represented Rockhopper’s 18.3% share in UOG. The transaction subsequently closed in February 2020.

AIM-listed UOG was established in 2015 by a former Tullow Oil Plc team, with a focus on building a portfolio of assets across Europe, Latin America, the Caribbean, and Africa. UOG currently holds interests in upstream exploration licenses in Italy, Jamaica, and the United Kingdom. The company’s average daily production during H1-2020 totaled approximately 3,000 barrels of oil equivalent per day (boe/d).

“The monetisation of our entire shareholding in United after a short holding period of under six months strengthens our balance sheet at a particularly challenging time for the sector,” said Rockhopper’s CEO, Sam Moody.

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