The deal foresees an upfront non-refundable payment of £ 805m, with an additional £ 2.4m to be paid before the end of 2020, subject to certain milestones being achieved, and a final £ 805m payment to follow once the field comes on stream.
If the milestones are not reached, the P2366 license will return to United Oil & Gas (95% shares) and Swift Exploration (5% shares).
In August 2018, United Oil & Gas were awarded Blocks 15/18d and 15/19b as part of the UK 30th offshore licencing round. These blocks contain the Crown oil discovery that was made in the Palaeocene Balmoral Sandstones in 1998 by ConocoPhillips with the 15/19-9 well.
United Oil & Gas started the farm-out process earlier this year to seek partners for further development of the Crown discovery.