Amid the UK's prevailing fiscal and regulatory hurdles in the oil and gas sector, Quattro Energy Limited's intended purchase of United Oil & Gas' Central North Sea license has fallen through due to a lack of funds. Despite the prospectivity of the license, the undermining of investor confidence in the sector's development potential has impeded the transaction.

The agreement, originally announced in January, detailed Quattro's conditional acquisition of the UK Central North Sea license P2519, encompassing the Maria discovery in the Outer Moray Firth Basin. Despite regulatory consent for the license transfer, Quattro's inability to secure funding within the extended timeline forced the termination of the asset purchase agreement.

United Oil & Gas, acknowledging the license's potential, has chosen not to pursue further phases beyond the current one, allowing their interest in the license to cease by November 30, 2023. The company's focus remains on other strategic initiatives, including the farm-out of Jamaica and upcoming drilling activities in Egypt.

The Maria discovery, situated near existing infrastructure, holds a substantial 2C gross contingent resource estimate, enhancing its significance within the region. Despite the unsuccessful deal, the announcement underscores the challenges faced by the UK's energy sector in maintaining investor confidence amid a complex fiscal landscape.