TIDMUOG
RNS Number : 3066P
United Oil & Gas PLC
07 February 2019
United Oil & Gas PLC / Index: LSE / Epic: UOG / Sector: Oil
& Gas
7 February 2019
United Oil & Gas PLC ("United" or the "Company")
CPR for Selva Gas Field, Onshore Italy
Highlights
-- Gross 2P reserves of 13.3BCF assigned to Selva Gas Field by
CGG following reclassification of previously reported gross
contingent resources ('2C')
o Equates to 2.7BCF of net 2P reserves attributable to
United
-- Represents United's first reserves and follows successful
drilling and testing of Podere Maiar well ('PM-1') in January
2018
-- Selva Gas Field on course to commence production in 2020 -
preliminary award of production concession received in January
2019
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 CGG Services (UK) Limited ('CGG') covering the Selva
Gas Field ('the Selva Field' or 'Selva'), onshore Italy, including
a reclassification of previously reported gross contingent
resources ('2C') to the higher confidence and more valuable
category of 2P (proven plus probable) reserves of 13.3BCF. United
holds a 20% interest in Selva which sits within the Podere Gallina
Exploration Permit ('Podere Gallina' or the 'Licence'), located in
the Po Valley region of Italy, a proven hydrocarbon region where
over 5,000 wells have been drilled historically.
The CPR was completed by CGG following positive flow testing of
the Podere Maiar-1 well ('PM-1') from two targeted reservoirs in
January 2018.
Selva Gas Field Reserves
(BCF)
--------------- -----------------------------
1P 2P 3P
--------------- -------- --------- --------
Gross 4.1 13.3
--------
29.6
Net to United 0.8 2.7 5.9
-------- --------- --------
As well as Selva, there is additional prospectivity within the
Podere Gallina Licence, including the Selva East, Selva South
Flank, Fondo Pierino, Cembalina and Riccardina structures. The
partners plan to acquire 3D seismic data over these additional
structures, the results of which will inform further development
drilling activity at Podere Gallina. Gross prospective resources
for the Selva East, Fondo Pierino and Cembalina prospects can be
found in the table below:
Gross un-risked prospective
resources bcf (100% best
estimates)
Prospect Best Chance of Success
------- ---------------------
Selva East 34.8 30%
------- ---------------------
Fondo Pierino 14.6 34%
------- ---------------------
Cembalina 3.3 51%
------- ---------------------
Selva South To be determined in Q2 2019
Flank
------------------------------
Riccardina To be determined in Q2 2019
------------------------------
Preliminary award of the production concession was recently
granted, including approval for the development plan for Podere
Gallina. This plan maps out a clear roadmap for the licence which
will deliver first production by 2020. In the past few days, the
Italian Ministry has also confirmed that recent government
amendments to energy policy will not affect the approval processes
for Selva, which continues to progress through the normal approval
procedures.
United Oil & Gas PLC CEO, Brian Larkin, said: "2.7BCF of 2P
reserves of gas attributable to our 20% interest in the Selva Gas
Field is a key milestone for the Company. Not only do these
represent United's first reserves, they serve to demonstrate the
considerable progress that has been made by the partners in
de-risking the field and advancing it towards production. With
preliminary approval for the development plan received in January,
we remain on course to bring Selva into production in 2020 with
facilities designed to produce at a gross rate of up to 150,000
cubic metres per day. At this rate, Selva will be generating
significant cash flows for United which in turn will be reinvested
into further high-impact activity across our portfolio of late
stage development opportunities onshore Europe and frontier
exploration offshore Jamaica. We are encouraged by the additional
prospectivity in the licence, particularly by a number of
potentially larger targets immediately adjacent to the Selva Gas
Field, and this was one of the key drivers behind United's original
acquisition of this licence.
"Selva is the latest in a series of CPRs published by United.
The recently published UK CPR included estimates of gross unrisked
2C resources of 6.35 MMstb and 1.55 MMstb for our Crown Oil
Discovery in the North Sea and our Waddock Cross Oil Field in the
Wessex Basin respectively. We will shortly publish our CPR for
Jamaica, which will complete the current set of studies."
Further Detailed Information
CGG completed the CPR for the Selva Field on the basis that the
contingent resources can now be categorised as reserves, pending
the provisional award of the Exploitation Licence. The updated CPR
is based on information gained from positive flow testing of the
Podere Maiar-1 well ('PM-1') from two targeted reservoirs in
January 2018. The thickest level C2 (net pay 25.5m) reported a peak
flow rate of 148,136 scm/day on a 3/8 inch choke and a pressure
differential of 11 bar with no water production. The higher level
C1 (net pay 15.5m) also reported strong flow test results with a
peak flow rate of 129,658 scm/day on a 3/8 inch choke with good
pressure recovery. There is additional prospectivity in the
Licence, including the Selva East, Selva South Flank, and
Riccardina structures.
Previously gross contingent resources of 7.2BCF/18BCF/29.6BCF in
the 1C/2C/3C categories have been reported for the Selva Field.
While CGG's estimate for 3P Reserves of 29.6BCF remain unchanged
from the previously reported 3C Contingent Resources of 29.6BCF, in
the 1P/2P estimates, CGG have considered a situation based solely
on production from the PM-1 well, in which the entire structure is
not drained. This has led to a difference in the numbers compared
to the previously quoted 1C/2C figures. The Directors believe once
PM-1 establishes a production history, a clearer picture will
emerge which, given the good connectivity that was observed when
the field was previously on production, could result in a higher
proportion of 3P reserves being upgraded into the 1P and 2P
categories.
CGG has given its consent to the reference to its CPR in this
announcement. CGG confirms it has reviewed this announcement and
confirms that the estimates have been correctly extracted from the
CPR. The CPR has been signed by Andrew Webb who has over 30 years
of relevant experience in the oil industry.
**S**
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
Work continuing to
high-grade other opportunities
in licence
------------------ ---------------- ---------- -------------------------------
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 January 2019
------------------ ---------------- ---------- -------------------------------
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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