News blog

Northern Petroleum

• BY: Andrew Hore |
• POSTED: 24/07/2014 |

Northern Petroleum is selling its UK licences and assets to Aim-quoted UK Oil & Gas Investments for £1.5m.

Government approvals and restructuring should be completed, and the sale completed, by the end of October. A minimum of £1m will be paid in cash and the rest will be in cash or shares in UK Oil & Gas at 1.0938p each depending on what the buyer decides. These shares are currently trading at 1.15p each.

There are five licences involved in the sale including three which are producing oil. The licences generated revenues of €591,000 in 2013 and were valued at €300,000.

This is the latest deal in the strategy to divest the non-core assets and concentrate on Canada and Italy.

Northern has been awarded two additional permits in Italy – one onshore and one offshore of Sicily, which is an extension of the Vesta prospect. A partner will be brought in for the Vesta prospect. 

At 22.88p a share, Northern is valued at £21.8m.

Download the latest AIM Journal from http://www.hubinvest.com/AIMPDFJuly2014_58.pdf