TIDMUOG
RNS Number : 9967X
United Oil & Gas PLC
03 September 2020
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES
OF THE MARKET ABUSE REGULATION (EU NO. 596/2014) ("MAR").
United Oil and Gas Plc
("United" or, "the Company")
3 September 2020
Provisional Award of Two Blocks in the UK North Sea
United Oil & Gas PLC (AIM: "UOG"), the growing oil and gas
company with a portfolio of production, development, exploration
and appraisal assets is pleased to announce the provisional award
of Blocks 15/18e and 15/19c to United in the UK 32(nd) Licensing
Round on a 100% Basis.
-- Blocks cover c.225km(2) in an area close to the Marigold and
Yeoman discoveries and the substantial Piper, MacCulloch and
Claymore oil fields
-- Minimal cost work programme agreed, which will involve the
purchase of an existing high-quality 3D seismic dataset and
detailed geological and geophysical analysis
-- Awarded blocks include:
o the Palaeocene Maria discovery, which United estimated as part
of its licence application to hold c. 6 MMboe mid-case recoverable
resources
o two Jurassic discoveries; Brochel and 15/18a-6, the latter of
which was drilled by Shell in 1987 and flowed at over 2,000 boepd
on test
o the Palaeocene Dunvegan prospect
-- New blocks are adjacent to United's P2480 Licence, containing
the Zeta prospect, providing the Company with a balanced portfolio
of discovered and prospective resources in an area of the North Sea
in which the Company has a track record of successful
divestments
Blocks 15/18e and 15/19c
The Company has been provisionally awarded a 100% interest in
Blocks 15/18e and 15/19c, which cover an area of c. 225 km(2) and
contain multiple targets. The Blocks are less than 10km away from
United's P2480 Licence, which contains the Zeta prospect, and add a
number of existing discoveries and prospects to United's exciting
portfolio of assets in what is a highly-prospective and active
area. The Blocks are close to the Piper, MacCulloch and Claymore
oil fields, and adjacent to the Marigold and Yeoman discoveries,
which are currently being developed by Anasuria Hibiscus UK Ltd.
United have a track record of delivering value in this area, and
have had previous success through working up licensing round awards
and monetising them via divestment.
Block 15/18e contains the Palaeocene Forties Maria Discovery.
This was initially discovered in 1976 by Shell/Esso and later
appraised by two further wells. United's internal analysis,
completed as part of the application, suggests that this is likely
to contain c. 6 MMboe of recoverable resources. Analysis suggests
that the commercial threshold for oil developments with proximity
to infrastructure in this part of the North Sea is c. 4-5 MMbbls,
indicating that a viable development should be possible. Indeed,
Maria is comparable in size to a discovery United previously
successfully divested in the area.
Block 15/18e also contains two Jurassic discoveries, Brochel and
15/18a-6. 15/18a-6 was drilled by Shell in 1987, and on test flowed
at over 2,000 boepd from two separate Jurassic reservoirs.
A further Palaeocene prospect - Dunvegan - has also been
identified straddling the boundary between Blocks 15/18e and
15/19c.
The Blocks have been awarded on the basis of a work programme
involving the purchase of an existing high-quality 3D seismic
dataset and detailed geological and geophysical analysis. This
analysis is planned to reduce the uncertainty on the estimated oil
volumes, ahead of making a drilling commitment. This will require a
low capital outlay by the Company. Subject to final award, the
Company would expect to see the work programme commence in early
2021.
United Oil and Gas COO Jonathan Leather commented:
"We are delighted with these awards which, based on extensive
technical work carried out over the available acreage ahead of the
application, were our primary focus for the 32(nd) Round. The
discovered resources and additional prospects we have added in
these North Sea Blocks are significant in their own right, but when
combined with our neighbouring Zeta licence, provide an exciting
portfolio of discoveries and prospects in an active area of the UK
North Sea."
"United has a proven record of success in UK licencing rounds.
More importantly, based on our knowledge of the region and our
strong geotechnical team, we have a record of adding value to those
licences and where appropriate monetising them in the interests of
shareholders."
ENDS
United Oil & Gas Plc (Company)
Brian Larkin, CEO brian.larkin@uogplc.com
Beaumont Cornish Limited (Nominated
Adviser)
Roland Cornish and Felicity Geidt +44 (0) 20 7628 3396
Optiva Securities Limited (Joint Broker)
Christian Dennis +44 (0) 20 3137 1902
Cenkos Securities Plc (Joint Broker)
Joe Nally (Corporate Broking) +44 (0) 20 7397 8900
Derrick Lee and Pete Lynch +44 (0) 131 220 6939
Murray (PR Advisor) +353 (0) 87 6909735
Joe Heron jheron@murrayconsultants.ie
Camarco (Financial PR/IR)
Billy Clegg
Georgia Edmonds
James Crothers +44 (0) 20 3757 4983
Notes to Editors
United Oil & Gas is a high growth oil and gas company with a
portfolio of low-risk, cash generative production and development
assets across Egypt, UK, Italy and a high impact exploration
licence in Jamaica.
Led by an experienced management team with a strong track record
of growing full cycle businesses and partnered with established
industry players, the Company is well positioned to deliver future
growth through portfolio optimisation and targeted
acquisitions.
United Oil & Gas is listed on the AIM market of the London
Stock Exchange. For further information on United Oil and Gas
please visit https://www.uogplc.com/
Qualified Person's Statement
Jonathan Leather, an Executive Director of the Company, who has
over 20 years of relevant experience in the oil and gas industry,
has approved the information contained in this announcement. Dr.
Jonathan Leather is a member of the Petroleum Exploration Society
of Great Britain and the Society of Petroleum Engineers.
Note: All references to flow rates set out above are gross
unless otherwise stated
Glossary:
boe means Barrels of oil equivalent
bopd means barrels of oil per day
boepd means barrels of oil equivalent per day
bbl, bbls means barrel, barrels
bbl/d means barrels per day
M means thousand
MM means million
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END
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