Thursday 23 August 2018

Highlights:

- Award of Blocks 15/18d and 15/19b in the North Sea which includes the Crown Oil Discovery, with estimates of up to 16 million barrels of recoverable oil

- Discussions with potential farm-in partners can now commence, with interest already received highlighting the quality of the asset

- Significant growing interest in the North Sea as an attractive low-cost hydrocarbon jurisdiction - licence highlights the team's ability to identify and acquire projects in attractive jurisdictions

- United's portfolio already includes commercial discoveries, appraisal projects and high-impact exploration

- Multiple value-adding events occurring in the next few months including appraisal drilling of UK near shore Colter Discovery

United Oil & Gas Plc, the oil and gas exploration and development company, announced that further to the announcement of 24 May 2018, it has accepted the formal offer from the Oil and Gas Authority, the UK oil and gas regulator, confirming the award of Blocks 15/18d and 15/19b (Licence P2366), with the licence term beginning 1 October 2018. The two highly prospective blocks in the Central North Sea cover an area of c. 13.6sqkm and are close to the substantial Piper, MacCulloch and Dumbarton/Donan oil fields and include the Palaeocene Crown Oil Discovery which could contain up to 16 million barrels of recoverable oil.

United's internal estimates suggest a range in recoverable volumes of 4-16mmbbls oil, with mid-case estimates of ~9mmbbls for the Crown Oil Discovery, which was made by ConocoPhillips in 1998 in well 15/19-9. The potential of the licence is underlined by the interest already received from prospective farm-in partners, and the Company will consider all options available in order to progress the work programme as rapidly as possible. The Directors believe this interest reflects not only the quality of Blocks 15/18d and 15/19b but also the uptick in activity and interest in the Central North Sea.