TIDMUOG
RNS Number : 1558G
United Oil & Gas PLC
28 March 2022
United Oil & Gas PLC / Index: AIM / Epic: UOG / Sector: Oil
& Gas
28 March 2022
United Oil and Gas Plc
("United" "the Group" or the "Company")
Commencement of Production from the ASD-2 well
United Oil & Gas PLC the growing oil and gas company with a
portfolio of production, development, exploration and appraisal
assets is pleased to announce an update on the ASD-2 development
well in the Abu Sennan licence, onshore Egypt. United holds a 22%
working interest in the licence, which is operated by Kuwait Energy
Egypt .
Highlights
-- The ASD-2 well has commenced production at an initial rate of
c. 2,100 bopd gross (c.462 bopd net), significantly above pre-drill
expectations
-- An exceptionally short turnaround time of just six days from
well completion to production and revenue generation for United
-- A rig has been mobilised to drill the second well in the 2022
drilling programme. This is the ASV-1X exploration well which is
expected to spud in the coming days
-- A fifth firm well has been added to the fully funded 2022
drilling campaign following completion of technical work and a
sustained high-oil price
United's Chief Executive Officer, Brian Larkin commented:
"This is another fantastic drilling result, significantly above
our pre-drill expectations. The ASD-2 well is the eighth
consecutive successful well at Abu Sennan since we acquired the
licence in 2020. The wells within Abu Sennan have an exceptionally
short turnaround time between well completion and commencement of
production - typically a matter of days for development wells. With
our production being leveraged to the current higher oil prices,
this additional production rapidly generates revenue and cashflow
for United. We have had a great start to the year with the
agreement on the Crown milestone payment followed by this
impressive drilling result and we look forward to continuing our
2022 drilling programme with the ASV-1X exploration well, due to
spud in the coming days. We are also pleased to have added a firm
development well to the drilling programme. There remains vast
potential in the Abu Sennan licence and against the backdrop of
higher commodity prices it is great that the JV partners have the
flexibility to optimise the drilling programme to generate the best
returns".
As previously announced, the ASD-2 development well was
interpreted to have encountered at least 25.5 metres of net oil pay
across the Abu Roash and Bahariya reservoirs. Twenty metres of high
quality net pay was interpreted in the Abu Roash-E (AR-E)
reservoir, significantly above pre-drill expectations. The AR-E
reservoir was tested with flow rates of 4,076 bopd and 3.1 mmscf/d
gas (c. 4,703 boepd gross; 1,035 boepd net) achieved on a 48/64"
choke and 2,299 bopd and 1.7 mmscf/d gas (c.2,646 boepd gross; 582
boepd net) achieved on a 32/64" choke.
The well has now been tied into the existing facilities and
brought on stream at an initial rate of c. 2,100 bopd gross (462
bopd net) on a 28/64" choke. This is just six days from well
completion to production, and this short turnaround time means
revenue is rapidly generated for the Company. The excellent rates
achieved on test have demonstrated the potential of the AR-E
reservoir at this location. The well will continue to be monitored,
so that the long term production potential of the well can be
assessed.
2022 Egypt Drilling Programme
Following the completion of the ASD-2 well, the first well in
the in the 2022 Abu Sennan drilling campaign, the ECDC-6 rig has
been released. The second well to be drilled will be the ASV-1X
exploration well. The Sino Tharwa-1 rig which will be used to drill
the ASV-1X well has been mobilised. United estimate that the ASV-1X
structure has the potential to hold over 2.5 million barrels gross
mean recoverable resources. The well is expected to spud in the
coming days.
In response to the sustained high oil-prices and the results of
recently completed technical work, the fully funded 2022 drilling
programme at Abu Sennan will now include a fifth firm well. The
drilling programme had initially included four firm wells and one
contingent well, which was dependent on the results of technical
studies on the Al Jahraa field. These studies have now been
completed, and have led to the Al Jahraa-14 development well
(AJ-14) being approved by the Joint Venture partners. AJ-14 will
target multiple Abu Roash reservoirs with the aim of accessing
additional reserves and accelerating production. It replaces the
AJSE-3 water injector that was initially proposed as a contingent
well. The AJ-14 well is likely to be the third well of the 2022
campaign, followed by the ASH-5 development well at the ASH
field.
United will be releasing its results for the full year ending 31
December 2021 on the 26 April 2022. In advance of this, the Company
will provide its usual quarterly production update for Q1 2022.
**ENDS**
Glossary:
bopd - barrels of oil per day
boepd - barrels of oil equivalent per day
choke- device to control the flow of fluids produced from
wells.
mmbbls - million barrels of oil
JV Partners- Joint Venture Partners
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.
This announcement contains inside information for the purposes
of Article 7 of Regulation 2014/596/EU which is part of domestic UK
law pursuant to the Market Abuse (Amendment) (EU Exit) regulations
(SI 2019/310).
Enquiries
United Oil & Gas Plc (Company)
Brian Larkin, CEO brian.larkin@uogplc.com
Sharan Dhami, Head of IR & ESG sharan.dhami@uogplc.com
Beaumont Cornish Limited (Nominated
Adviser)
Roland Cornish | Felicity Geidt +44 (0) 20 7628 3396
Optiva Securities Limited (Joint
Broker)
Christian Dennis +44 (0) 20 3137 1902
Tennyson Securities (Joint Broker)
Peter Krens +44 (0) 020 7186 9030
Camarco (Financial PR)
Billy Clegg | James Crothers | Tessa +44 (0) 20 3757 4983 | uog@camarco.co.uk
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, 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 www.uogplc.com
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