United Oil & Gas PLC FY 2020 Trading Update and Guidance for FY 2021 (4616N)
February 01 2021 - 2:02AM
UK Regulatory
TIDMUOG
RNS Number : 4616N
United Oil & Gas PLC
31 January 2021
United Oil & Gas PLC / Index: AIM / Epic: UOG / Sector: Oil
& Gas
1 February 2021
United Oil and Gas plc
("United" or "the Company")
FY 2020 Trading Update and Guidance for FY 2021
United Oil & Gas PLC (AIM: "UOG"), the growing oil and gas
company with a portfolio of production, development, exploration
and appraisal assets, issues the following trading update for the
full year 2020 and guidance for 2021. This is in advance of the
Group's Full Year Results which are expected to be released in the
second half of April 2021. The information contained herein has not
been audited and may be subject to further review and
amendment.
United Chief Executive Officer, Brian Larkin commented:
"2020 was a successful year for United, delivering an excellent
operational and financial performance, despite a challenging
commodity price environment and the global pandemic. We
successfully integrated our Egyptian assets, delivering average
2020 working interest production of 2,195 boepd, creating revenue
of c. $9.0 to $9.2m (net of government take) for the ten months
since completion of the acquisition.
"United begins 2021 in strong position with a balanced
portfolio, low-cost growing production, high quality reserves and a
healthy balance sheet. The business is well placed to benefit from
rising hydrocarbon prices but also well hedged to protect against
volatility. Our fully funded, multi-well drilling programme in
Egypt has begun with the result of the ASH-3 well expected shortly.
This low-risk well has the potential to build on the successes of
2020 by delivering increased production and reserves. A formal
farm-out process will shortly commence seeking partners to join us
in unlocking the potential in our high impact Walton Morant
exploration licence in Jamaica, and our Italian asset remains on
track for first gas in 2021."
Financial and Operational Update
FY 2020 Performance
-- Group working interest production 2,195 boepd *
-- FY 2020 Total Revenues of c. $9.0 to $9.2m**
-- Realised Oil Price c. $37.7/bbl *
-- Group Cash Balance of $2.1m
-- Total Cash Collections of c. $9.8m *
-- Cash Capital Expenditure c. $2.5m
* From completion of the Rockhopper Egypt acquisition to period
end, 28(th) February 2020 to 31(st) December 2020
** 22% working interest net of Government Take
2021 Guidance
-- Group working interest production in Egypt is forecast to
average between 2,300 and 2,500 boepd for H1 2021. Further updates
will be provided as the 2021 drilling programme progresses
-- A reserves uplift is expected following the success of the El
Salmiya 5 and ASH 2 wells in 2020 (subject to independent
certification with publication expected during H1-21)
-- Group Capital Expenditure is forecast to be $5.3m, fully funded from existing operations
o c. $4.7m to be invested in Egypt with two firm wells, five
workovers, and facilities upgrades
o c. $0.6m to be invested in our Jamaican, Italian and UK
assets
-- Flexibility exists within the Abu Sennan joint venture and
the EDC-50 rig contract to add up to two further wells in the Abu
Sennan drilling campaign subject to well results and the commodity
price environment
Glossary:
boepd - barrels of oil equivalent per day
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, development,
appraisal and exploration assets across Egypt, UK, Italy and a high
impact exploration licence in Jamaica.
The business is led by an experienced management team with a
strong track record of growing full cycle businesses, partnered
with established industry players and 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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