TIDMUOG
RNS Number : 3333X
United Oil & Gas PLC
04 May 2021
/+United Oil & Gas PLC / Index: AIM / Epic: UOG / Sector:
Oil & Gas
04 May 2021
United Oil and Gas plc
("United" or "the Company")
ASD-1X Well Test Update and Submission of Notice of Commercial
Discovery
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 provide the following update on
the testing of the ASD-1X exploration well in the Abu Sennan
concession, onshore Egypt and the spudding of the AJ-8 development
well . United holds a 22% non-operating interest in Abu Sennan,
which is operated by Kuwait Energy Egypt ("KEE").
Highlights
-- Notice of a commercial discovery and an application for a
development lease covering the ASD-1X discovery have been submitted
to EGPC by the operator, KEE
-- The ASD-1X well tested both the Lower Bahariya and Abu Roash C ("ARC") reservoirs
-- Preliminary short-term test results from the Lower Bahariya reservoir indicate:
o A maximum flow rate of 1,619 bopd and 2.840 mmscf/d (c. 2,187
boepd gross; 481 boepd net) on a 64/64" choke
o A rate of 852 bopd and 1.600 mmscf/d (c. 1,172 boepd gross;
258 boepd net) on a more constrained 32/64" choke
-- Preliminary short-term test results from the Abu Roash C ("ARC") reservoir indicate:
o A maximum flow rate of 1,215 bopd and 1.371 mmscf/d (c. 1,489
boepd gross; 328 boepd net) on a 64/64" choke
o A rate of 661 bopd and 0.632 mmscf/d (c. 787 boepd gross; 173
boepd net) on a more constrained 24/64" choke
-- Headline test results from both reservoirs exceed United's internal pre - drill expectations.
-- The EDC-50 rig has now moved to the Al Jahraa Field within
the Abu Sennan licence, where drilling of the AJ-8 development well
commenced on 2(nd) May
United Chief Executive Officer, Brian Larkin commented:
"Today's announcement is yet another positive result from Abu
Sennan, with the notice of a commercial discovery at ASD-1X, and it
is very pleasing to see the application for a development lease
being submitted. This will not only enhance production but will
further increase the proven reserves on the licence.
"The new discovery at ASD-1X is also a positive sign for the
remaining exploration potential within the Abu Sennan concession,
and we will continue to work with our JV partners to prioritise
these opportunities which can ultimately be brought into production
in short time frames.
"With the EDC-50 rig now drilling the AJ-8 development well, we
look forward to providing further updates on the continuing 2021
Abu Sennan drilling campaign in due course."
ASD-1X Well
The ASD-1X exploration well, located 12km to the north-east of
the producing Al Jahraa Field, safely reached Total Depth (TD) of
3,750m MD on 30 March, several days ahead of schedule and
under-budget.
Preliminary results suggest the well encountered a combined net
pay total of at least 22m across a number of reservoir intervals,
including the primary reservoir targets of the AR-C and AR-E, as
well as the Lower Bahariya and Kharita Formations.
The ASD-1X well has now been successfully tested from both the
Lower Bahariya and Abu Roash C ("ARC") reservoirs. Preliminary
short-term test results from the Lower Bahariya reservoir indicate
a maximum flow rate of 1,619 bopd and 2.84 mmscf/d (c. 2,187 boepd
gross; 481 boepd net) on a 64/64" choke, and a rate of 852 bopd and
1.6 mmscf/d (c. 1,172 boepd gross; 258 boepd net) on a more
constrained 32/64" choke. The preliminary short-term test results
from the Abu Roash C ("ARC") reservoir indicate a maximum flow rate
of 1,215 bopd and 1.371 mmscf/d (c. 1,489 boepd gross; 328 boepd
net) on a 64/64" choke, and a rate of 661 bopd and 0.632 mmscf/d
(c. 787 boepd gross; 173 boepd net) on a more constrained 24/64"
choke.
Based on these preliminary test results, notice of a commercial
discovery and an application for a development lease at ASD-1X have
been submitted to EGPC by the operator, KEE. Production from what
would be the 8(th) development lease within the Abu Sennan licence,
would be expected to commence shortly after approvals are
granted.
The well was drilled by the EDC-50 rig, which has now been moved
to the Al Jahraa Field within the Abu Sennan concession, where the
drilling of the AJ-8 development well commenced on 2(nd) May. This
well will target the Abu Roash and Bahariya reservoirs in an
undrained portion of the Al Jahraa field.
**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") as it forms
part of UK Domestic Law by virtue of the European Union
(Withdrawal) Act 2018 .
Glossary:
Boepd - barrels of oil equivalent per day
Bopd - barrels of oil per day
Mmscf/d - million standard cubic feet of gas per day
MD - Measured Depth
TVDSS - Total Vertical Depth Subsea
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 (Broker)
Christian Dennis +44 (0) 20 3137 1902
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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END
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