TIDMUOG
RNS Number : 5951F
United Oil & Gas PLC
19 July 2021
United Oil & Gas PLC / Index: AIM / Epic: UOG / Sector: Oil
& Gas
19 July 2021
United Oil and Gas plc
("United" or "the Company")
Successful Al Jahraa-8 Development Well; Additional 2021 Abu
Sennan Exploration Well Planned
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 drilling of the Al Jahraa-8 ("AJ-8") development well in the
Abu Sennan concession, onshore Egypt (the "Licence"). United holds
a 22% working interest in the Licence, which is operated by Kuwait
Energy Egypt.
Highlights from AJ-8 Well:
-- Initial interpretations indicate a total of over 40m MD of
net oil pay encountered cumulatively across three different
reservoir units in a sidetrack (AJ-8ST1), after the initial hole
was plugged back due to stability issues
-- Preliminary results indicate over 30m of net pay in the Upper and Lower Bahariya reservoirs, significantly above pre-drill expectations
-- The Abu Roash E ("AR-E") reservoir also appears to have
encountered net pay, in line with pre-drill expectations
-- The well has now been secured with liner in place, and will
be completed and tested across the three pay intervals
-- The successful discovery of commercial net pay in AJ-8ST1
makes it the 5(th) successful well in a row at Abu Sennan since
United acquired its interest in the licence
Additional 2021 Exploration Well - "ASX-1X"
-- Following the continued success and potential demonstrated at
Abu Sennan, an additional, fully funded, exploration well
("ASX-1X") has now been added to the 2021 drilling schedule
-- ASX-1X will be drilled 11km to the west of the successful
ASD-1X well, which discovered 22m of net oil pay, before being put
into production approximately two months after discovery
-- The well will target multiple Abu Roash and Bahariya
reservoirs and will also be drilled using the EDC-50 rig following
completion of operations at the AJ-8 well
-- Longer-term plans for unlocking additional potential in Abu
Sennan licence are currently under discussion amongst the Joint
Venture Partnership.
United's Chief Executive Officer, Brian Larkin commented:
"We are delighted to be able to announce yet another positive
result from the Abu Sennan licence. This latest success from the
AJ-8 development well will not only provide an uplift to our
low-cost production base, but also demonstrates the deeper
potential that exists within the Bahariya Formation targets.
Encountering over 30m of net pay in the Bahariya Formations is
significantly above our pre-drill expectations and will likely be
targeted further in subsequent drilling campaigns.
"The JV partners have discussed the upside potential on the Abu
Sennan licence, both from the existing fields and the identified
exploration targets, and it is great to have an additional
exploration well added to the 2021 drilling schedule, funded from
operating cashflow, showing the willingness of the JV partners to
invest in unlocking that upside potential. Although this is
expected to be the final well of the 2021 campaign, discussions are
continuing with partners on the longer-term plans for accessing the
unrealised value at Abu Sennan, and we look forward to updating the
markets on these plans in due course.
"Given the previously reported positive results from the ASD-1X
well, we look forward to drilling this similar-looking structure,
and will update the market as the drilling progresses."
Al Jahraa-8 Well
The AJ-8 well commenced drilling on 2(nd) May, targeting the Abu
Roash and Bahariya reservoirs in an undrained portion of the Al
Jahraa field. After drilling through the Upper Bahariya and
reaching 4,071m MD, inflow into the well was observed. The well was
brought under control, but due to hole conditions in the highly
deviated well, a decision was made to plug the well back above the
ARC, and drill a sidetrack.
Preliminary interpretations indicate the sidetrack encountered
net pay in the AR-E, and over 30m of net pay across the Upper
Bahariya and Lower Bahariya Upper reservoirs. Due to hole
conditions in the sidetrack, a decision was made to run liner at
4,314m MD and TD the well without reaching the Lower Bahariya Lower
reservoir that had been a pre-drill target.
With initial interpretations suggesting over 40m net pay
encountered, the Al Jahraa-8 well has further demonstrated the
potential within the currently producing fields of the Abu Sennan
licence. In particular, the net pay that was encountered in the
Upper Bahariya is above pre-drill expectations.
The well now be completed and tested across the three
hydrocarbon-bearing reservoirs, and we will update the market on
these results in due course.
ASX-1X Exploration Well
After completing the AJ-8 well, the EDC-50 rig will move c.7km
to the north of the Al Jahraa field to drill the ASX-1X exploration
well. This is a similar structure to the nearby discovery that was
recently made at ASD-1X, with targets in the Khoman, Abu Roash and
Bahariya reservoirs.
The ASX prospect had always ranked highly for United among the
identified exploration targets in Abu Sennan, and with the
de-risking provided by the positive result at ASD-1X only 11km
away, and the short timeframe in which that discovery was put into
production, the ASX-1X prospect has become a prioritised target.
The value of additional exploration drilling is clear, and the
option to extend the rig contract for this well was favourably
supported by all the JV partners.
This is expected to be the final well of the 2021 campaign, with
longer-term plans for unlocking the additional potential that
exists in the Abu Sennan licence currently under discussion.
United will publish our H1 Trading Statement and Operational
Update on Monday 26(th) July. We will host a Shareholder Call on
that day. Details of the call will be included in the Trading
Statement. Questions can be submitted in advance to
uog@camarco.co.uk.
**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 ("UK MAR").
Glossary
MD - Measured Depth
TVD - Total Vertical Depth
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
Tessa Gough-Allen
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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