TIDMUOG
RNS Number : 7487O
United Oil & Gas PLC
01 February 2019
United Oil & Gas PLC / Index: LSE / Epic: UOG / Sector: Oil
& Gas
1 February 2019
United Oil & Gas PLC ("United" or the "Company")
CPRs for Crown Oil Discovery and Waddock Cross Field
Highlights
-- Crown Oil Discovery, North Sea - 6.35 MMstb of gross unrisked
2C oil contingent resources assigned to the Crown Discovery in the
North Sea by ERCE
-- Waddock Cross Field, Wessex Basin - Updated gross unrisked 2C
oil contingent resources of 1.55 MMstb assigned to the Waddock
Cross Field in the Wessex basin by ERCE
-- Combined net unrisked 2C oil contingent resources from the two assets of 6.45 MMstb to United
-- Provides support to Company estimates of existing risked
portfolio value of close to US$80 million
-- Further CPRs for the Colibri prospect offshore Jamaica and onshore Italy licences due shortly
United Oil & Gas Plc, the London Stock Exchange listed oil
and gas exploration and development company, is pleased to announce
the results of an independent Competent Person's Report ('CPR')
prepared by ERC Equipoise Ltd ('ERCE') for the Crown Oil Discovery
on licence P2366 in the Central North Sea and the Waddock Cross
Field on Licence PL090 in the Wessex Basin.
The Crown CPR, which is the first CPR commissioned by United on
the Crown Discovery, estimates gross unrisked 2C oil contingent
resources of 6.35 MMstb for this asset.
The updated CPR on the Waddock Cross Field is based on recently
reprocessed seismic, and has increased the gross unrisked 2C oil
contingent resources from 1.23 MMstb to 1.55 MMstb.
The above CPRs form part of a number of reports that have been
commissioned by the Company. CPRs covering the large undrilled
Colibri prospect on the Walton-Morant Licence offshore Jamaica and
the Selva Gas Field on the Podere Gallina licence onshore Italy are
currently being finalised. The CPR results for the Crown and
Waddock Cross licences are outlined in the table below:
Gross Unrisked Oil Recoverable Net Unrisked Oil Recoverable
Contingent Resources Contingent Resources
(MMstb) (MMstb)
1C 2C 3C 1C 2C 3C
---------- ---------- ----------- ---------- ---------- ---------
Crown (95%) 2.91 6.35 11.48 2.76 6.04 10.9
---------- ---------- ----------- ---------- ---------- ---------
Waddock Cross (26.25%) 0.46 1.55 5.30 0.12 0.41 1.39
---------- ---------- ----------- ---------- ---------- ---------
1) "Gross Contingent Resources" are 100% of the volumes
estimated to be recoverable from the field without any economic
cut-off being applied.
2) "Net Contingent Resources" are UOG's working interest
fraction of the gross Contingent Resources
3) Contingent Resources are estimates of volumes that might be
recovered from the field under as yet undefined development
scheme(s). It is not certain that the field will be developed or
that the volumes reported as Contingent Resources will be
recovered.
4) The volumes reported here are unrisked in that they have not
been multiplied by a chance of development.
Crown Discovery
This is the first CPR for the Crown Discovery. A farm out
process to seek other industry partners to move the Crown Discovery
forward is already underway, and has seen considerable interest
within the industry. These new CPR numbers, which in the Company's
view are based on a conservative assessment of recovery of the
in-place oil, will be invaluable in the farm-out process as they
provide necessary data to give greater certainty to potential
investors.
Waddock Cross Field
The Waddock Cross CPR updates previous independent estimates and
is based on reprocessed and improved data. Both the oil in - place
and recoverable resources estimates have increased. This CPR, along
with other analysis already completed, will guide the Company and
the operator in developing a drilling plan for the licence, with a
well targeted later this year.
United Oil & Gas PLC CEO, Brian Larkin, said:
"Audited gross 2C oil contingent resources of nearly 8 MMstb,
with over 6.4 MMstb net to United, for just two of our UK assets
represents an excellent outcome. Updated volumetrics are due
shortly for the large undrilled Colibri prospect on the Tullow
Oil-operated Walton-Morant licence, offshore Jamaica and also for
the development stage Selva Gas Field, onshore Italy and I look
forward to sharing the results of these in due course.
"Since our inception, United has procured a portfolio of
exceptional assets, normally beyond the scope of a company of this
size. While we will continue to build our portfolio, adding
licences where we see opportunity, 2019 will see a greater emphasis
on unlocking the value of our asset base. Independent verification,
through CPRs on each asset, will form an important part of this
process. There will be an extensive operations programme, beginning
imminently with the Colter drill and including further activity in
Italy, moving to production in 2020. We will also seek to unlock
value through farm downs in Jamaica and in our Crown discovery, the
commerciality of which is supported by the CPR estimates reported
here. With Company estimates of close to US$80m NPV of assets
already in place, we look forward to growing awareness of the
considerable strength of the United business."
**S**
ERC has given its consent to the reference to its CPR in this
announcement. ERCE confirms it has reviewed this announcement and
confirms that the estimates of Contingent Resources have been
correctly extracted from the CPR. The CPR has been signed by Simon
McDonald who has over 40 years of relevant experience in the oil
industry.
For more information please visit the Company's website at
www.uogplc.com or contact:
United Oil & Gas Plc (Company)
Brian Larkin brian.larkin@uogplc.com
Optiva Securities Limited (Broker)
Christian Dennis +44 (0) 20 3137 1902
Beaumont Cornish Limited (Financial
Adviser)
Roland Cornish and Felicity Geidt +44 (0) 20 7628 3396
Murray (PR Advisor) +353 (0) 87 6909735
Joe Heron jheron@murrayconsultants.ie
St Brides Partners (Financial
PR/IR)
Frank Buhagiar and Juliet Earl +44 (0) 207 236 1177
Notes to Editors
United Oil & Gas plc (UOG) is listed on the main market of
the London Stock Exchange. United was established to explore,
appraise and develop low risk assets in Europe and to develop
higher risk, higher impact exploration projects in the Caribbean,
Latin America and Africa.
The following table outlines the Company's licence
interests:
Country Licence Operator United Next Stage of Development
Interest
Italy Podere Gallina Po Valley 20% CPR nearing completion
Licence Energy Limited Infrastructure build
2019
Production in 2020
Further seismic to
identify other opportunities
in licence 2019
------------------ ---------------- ---------- -----------------------------
UK Waddock Cross Egdon Resources 26.25% Development drilling
Field UK Limited targeted in 2019
------------------ ---------------- ---------- -----------------------------
UK PL090 Exploration Egdon Resources 18.95% Technical work to de-risk
UK Limited exploration targets
continuing
------------------ ---------------- ---------- -----------------------------
UK P1918 Corallian 10% Colter Drill commencing
Energy Limited near term
------------------ ---------------- ---------- -----------------------------
UK PEDL 330 Corallian 10% Technical work to de-risk
Energy Limited exploration targets
continuing
------------------ ---------------- ---------- -----------------------------
UK PEDL 345 Corallian 10% Technical work to de-risk
Energy Limited exploration targets
continuing
------------------ ---------------- ---------- -----------------------------
UK P2366 United Oil 95% CPR Complete
& Gas Plc Seismic reprocessing
underway ahead of likely
Farm Down Process
------------------ ---------------- ---------- -----------------------------
Jamaica Walton-Morant Tullow Jamaica 20% CPR nearing completion
Ltd Interpretation of Seismic
ongoing ahead of Farm
Down Process
------------------ ---------------- ---------- -----------------------------
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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