TIDMUOG
RNS Number : 5000A
United Oil & Gas PLC
02 June 2021
/+United Oil & Gas PLC / Index: AIM / Epic: UOG / Sector:
Oil & Gas
02 June 2021
United Oil and Gas plc
("United" or "the Company")
Abu Sennan Update and Approval of Award of Development Lease
over ASD-1X 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 an update on the Abu
Sennan Licence, Egypt in which United holds a 22% non-operating
interest.
Highlights
-- Approval from the Minister of Petroleum of the award of a
development lease covering the ASD-1X discovery
-- Commencement of production from the ASD-1X well with initial
gross rates of 1,295 bopd (285 bopd net to UOG's working
interest)
o Commencement of production from the ASD-1X exploration well
achieved less than two months from the announcement of the initial
discovery in April 2021
-- Successful workover at the ASH-1ST2 well, adding over 1,000
bopd gross (220 bopd net) to production from the ASH Field
United Chief Executive Officer, Brian Larkin commented:
"The speed at which the Joint Venture is developing Abu Sennan
is demonstrative of the excitement we share for the long-term
potential of the licence, which continues to deliver for the
Company. Today's announcement is yet more positive news, with the
approval of the development lease at ASD-1X and the start of
production from that well. We would also expect this result to add
to the proven reserves on the licence.
"In tandem with exploration success in Abu Sennan, the
encouraging result from the ASH-1ST2 workover will provide a
further boost to production, and will also help increase our
understanding of the ASH Field.
"With the EDC-50 rig still drilling the Al Jahraa-8 development
well, we look forward to providing further updates on the
continuing 2021 Abu Sennan drilling campaign in due course."
Approval of Development Lease at the ASD-1X Discovery
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. The well encountered 22m net pay, and on preliminary
testing flowed at gross rates of 1,619 bopd from the Lower Bahariya
reservoir and 1,215 bopd from the Abu Roash "C" reservoir.
Based on these preliminary test results, notice of a commercial
discovery and an application for a development lease at ASD-1X were
submitted to EGPC by the operator, Kuwait Energy Egypt ("KEE"). On
26(th) May, the Minister of Petroleum approved the award of this
8(th) Development Lease within the Abu Sennan licence, and
production has now commenced from the well, with combined initial
gross rates of 1,295 bopd being achieved from the ARC and Lower
Bahariya reservoirs. This is an exceptionally quick turnaround of
under two months from discovery to production, and at these rates,
payback on the well would be expected in less than a year.
Successful Workover at ASH-1ST2
A workover at the ASH-1ST2 well was successfully completed in
May. The workover involved replacing the existing tubing, cleaning
the wellbore, and carrying out reservoir stimulation work. Since
completion and initial testing, the well has been flowing at gross
rates of over 1,200 bopd (compared to c. 200 bopd pre-workover),
further boosting production from the asset.
**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
James Crothers uog@camarco.co.uk
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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