United wraps up Italian sale to Prospex
United Oil and Gas announced on April 11 it had completed the sale of its 20% stake in the Podere Galina licence containing the Selva gas field in Italy to fellow London-listed player Prospex Energy.
The completion of the deal, priced at €2.2mn ($2.4mn), comes after it was cleared by Italian authorities last week. It marks United's exit from Italy, and means United will avoid its €800,000 share of capital expenditure at Selva.
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"The proceeds of this transaction along with other divestments strengthen our balance sheet to support our growth strategy," United CEO Brian Larkin said in a statement. "We have re-focused our portfolio on our core areas which provides us with a platform for organic growth and also a base from which we can evaluate further growth opportunities in 2022 and beyond."
Situated in the Po Valley region of north Italy, Selva is expected to come on stream in early 2023, about a year later than previously planned because of a delay to the project's tie-in to the national gas grid.
The field is operated by Po Valley Energy with a 63% interest. Once the sale is completed, Prospex will raise its share from 17% to 37%.