TIDMUOG
RNS Number : 1973H
United Oil & Gas PLC
02 December 2020
United Oil & Gas PLC / Index: AIM / Epic: UOG / Sector: Oil
& Gas
2 December 2020
United Oil and Gas plc
("United" or "the Company")
Operational Update - Egypt
-- EDC-50 rig has been contracted to commence a drilling programme on the Abu Sennan concession
-- Drilling will start with the ASH-3 development well, which is
planned to commence in the coming weeks
-- Expected follow-on targets include a low-risk exploration
well, and a further development well on the ASH structure
-- Working interest production from Abu Sennan on target to
exceed previous guidance of 2,300 boepd for H2 2020
-- ASH gas pipeline to boost production from start of 2021
United Oil & Gas PLC (AIM: "UOG"), the growing oil and gas
company with a portfolio of production, development, exploration
and appraisal assets offers an update on the Abu Sennan Licence in
Egypt (United 22% working interest), including the signing of the
rig contract for the ASH-3 well.
The EDC-50 rig has a history of successful drilling in the
Western Desert. It has been contracted for a drilling programme,
starting with the ASH-3 development well, with low-cost rig-rates
linked to oil-price. The campaign will be funded from operating
cashflow. Subject to EGPC approvals, the rig is due to come on site
before the end of the year, with drilling starting shortly after
this. It is anticipated that the ASH-3 well will take up to 60 days
to drill and test.
The ASH-3 well will target the producing Alam El Bueib (AEB)
reservoirs in an area of the ASH Field updip of the ASH-2
production well, which came onstream at the beginning of the year,
and which to date has produced in excess of 1 million barrels.
The ASH-3 development will be the first well due to be drilled
by the EDC-50 rig in the 2021 campaign. United expect the second
well in the drilling schedule to be an exploration well, targeting
the Abu Roash reservoirs in the 4-way dip-closed Prospect D
structure in the north of the Abu Sennan licence, close to the
producing Al Jahraa field. This is a low risk well, located close
to existing infrastructure, capable of being brought into
production quickly.
Average production rates on the Abu Sennan Licence for the
second half of 2020 to 29 November are c. 2,370 boepd net to
United's working interest. This is a 20% increase to the average H1
production achieved after United's entry to the licence at the end
of February. Average H2 production is likely to exceed the previous
guidance of 2,300 boepd net.
In the near term, production is due to benefit from the
completion of the ASH-2 gas pipeline, expected to be brought
onstream at the start of 2021. When completed, the pipeline will
substantially increase recovery rates and reduce the need to flare
gas, improving the environmental performance of the licence. This
pipeline has the potential to add up to 1,000 boepd of gross
production.
In order to give greater visibility to shareholders, United
will, from January, report production levels on a quarterly
basis.
United Chief Executive Officer, Brian Larkin commented:
"Following an intense period of planning, we are delighted to be
ready to re-commence drilling activities at the Abu Sennan licence,
fully funded from our operating cashflow. We have worked closely
with the operator, Kuwait Energy Egypt, over recent months to
design a drilling campaign for 2021 and believe the scheduled wells
can maintain the exceptional record of over 80% drilling success
which has been achieved on the licence to date.
"The Abu Sennan licence continues to perform strongly and
deliver low cost production growth. With over 35 mapped prospects
on the licence and following on from the outstanding success of the
ASH-2 and ES-5 wells where drilling outcomes significantly exceeded
pre-drill expectations it offers excellent potential to deliver
even greater returns for the licence partners. We look forward to
updating shareholders on the progress of the ASH 3 development well
in the coming weeks and months."
**ENDS**
Jonathan Leather, an Executive Director of the Company, who has
over 20 years of relevant experience in the oil and gas industry,
has reviewed and approved the information contained in this
announcement. Dr Jonathan Leather is a qualified person as defined
in the guidance note for Mining Oil & Gas Companies of the
London Stock Exchange and is a member of the Petroleum Exploration
Society of Great Britain and the Society of Petroleum
Engineers.
The information contained within this announcement is deemed by
the Company to constitute inside information as stipulated under
the Market Abuse Regulations (EU) No. 596/2014 ("MAR").
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 +44 (0) 20 3757 4983
Georgia Edmonds uog@camarco.co.uk
James Crothers
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/
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END
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