TIDMUOG
RNS Number : 1597H
United Oil & Gas PLC
02 August 2021
United Oil & Gas PLC / Index: AIM / Epic: UOG / Sector: Oil
& Gas
02 August 2021
United Oil and Gas plc
("United" or "the Company")
Successful Testing of Al Jahraa-8 Development Well
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 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-testing:
-- Preliminary short-term test results from the Lower Bahariya reservoir indicate:
o A maximum flow rate of 2,093 bopd and 3.63 mmscf/d (c. 2,819
boepd gross; 620 boepd net) on a 64/64" choke
o A rate of 1,189 bopd and 1.22 mmscf/d (c. 1,433 boepd gross;
315 boepd net) on a more constrained 26/64" choke
-- Headline test results exceed United's internal pre - drill expectations.
-- The well will be brought onto production from the Lower Bahriya reservoir in the coming days
-- The EDC-50 rig will now move 7km to the north of the Al
Jahraa Field, where drilling of the ASX-1X exploration well is due
to commence in the coming days
United's Chief Executive Officer, Brian Larkin commented:
"We are delighted to announce further positive news from the
AJ-8 development well; continuing our run of success on the Abu
Sennan licence. With over 40m of net pay previously reported, the
AJ-8 well was expected to flow at good rates, but it is great to
have our expectations exceeded with these encouraging initial test
rates recorded from the Lower Bahariya.
"We will now work with our partners to bring the well on stream
in the coming days, at a rate which will maximise the long-term
production and contribute to our low cost production base. We will
move ahead to spud the ASX-1X exploration well, the next step in
our plans to further realise the value of this exceptional
licence."
Al Jahraa-8 Well Detail
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. The original hole was sidetracked after encountering
poor hole conditions in the highly deviated well.
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.
The AJ-8 well has now been successfully tested from the Lower
Bahariya reservoir. Preliminary testing of the Lower Bahariya
reservoir was carried out over a 17 hour period on a number of
different choke sizes. Preliminary results indicate a maximum flow
rate of 2,093 bopd and 3.63 mmscf/d (c. 2,819 boepd gross; 620
boepd net) on a 64/64" choke, and a rate of 1,189 bopd and 1.22
mmscf/d (c. 1,433 boepd gross; 315 boepd net) on a more constrained
26/64" choke.
The well will now be completed and brought onstream from the
Lower Bahariya reservoir. The hydrocarbon-bearing zones that were
encountered in the Upper Bahariya and AR-E will be tested and
brought onstream at a later date.
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, which is expected to spud in the coming days. 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.
**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
Boepd - barrels of oil equivalent per day
Bopd - barrels of oil per day
Mmscf/d - million standard cubic feet per day
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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