TIDMUOG
RNS Number : 5033Z
United Oil & Gas PLC
15 September 2022
United Oil & Gas PLC / Index: AIM / Epic: UOG / Sector: Oil
& Gas
15 September 2022
United Oil and Gas Plc
("United" "the Group" or the "Company")
Commencement of drilling at ASH-4 and AJ -14 well update
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 announce the commencement of
drilling at the ASH-4 development well location and an update on
the Al Jahraa-14 ("AJ-14") 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.
Summary
-- The fourth well in the 2022 Abu Sennan programme, ASH-4, has commenced drilling
-- ASH-4 is a high impact development well, targeting over 2
mmbbls gross in the prolific Alam El Bueib ("AEB") reservoir
-- On AJ-14, whilst oil has been recovered to surface on testing
, consistent flow rates have yet to be established due to near
bore-hole formation damage
-- The testing programme is continuing in the Abu Roash-C
("ARC") interval at AJ-14, with well stimulation expected to
deliver commercial production rates in line with pre-drill
estimates of c. 300 bopd gross
ASH-4 development well
The ASH-4 development well, the fourth well in the 2022 drilling
programme at Abu Sennan, has commenced drilling. The well will be
drilled as a vertical hole targeting the prolific AEB reservoir. It
is expected to take 55 days to drill and complete, and is fully
funded from operational cashflow. The well is targeting 2.2 mmbbls
gross recoverable oil in what has been to date a highly productive
area of the licence. On completion of drilling, ASH-4 is expected
to be rapidly brought into production.
The completion of seismic reprocessing earlier in the year has
significantly improved the quality of the subsurface imaging over
the ASH field resulting in increased in-place volumes on the ASH
field (from 17 to 22 mmboe gross according to operator estimates)
and optimising the current well location. In addition, it has
helped identify a further six additional potential development well
locations, which will be considered for future drilling
programmes.
AJ-14 well-testing update
The AJ-14 well successfully encountered seven metres of net pay
in the primary ARC target in line with the higher end of the
pre-drill estimates. Whilst the well recorded indications of
hydrocarbon-bearing reservoir in the deeper Abu Roash G ("ARG")
reservoir, due to technical difficulties whilst running the logging
tools, a full logging suite was not acquired over this secondary
target. Further issues with the borehole were encountered in the
deeper section of the well, and the decision was made to complete
the well solely in the ARC.
Following the installation of a down-hole pump, oil has been
recovered to the surface from the well however consistent flow
rates have yet to be established, due to near-borehole formation
damage. Well stimulation has previously delivered successful
results on a number of Abu Sennan wells with a stimulation
programme expected to commence on AJ-14 shortly, subject to final
partner approval. As the AJ-14 well encountered good quality
reservoir facies in the ARC in the heart of the Al Jahraa field,
once the borehole issues have been addressed, commercial flow-rates
in line with the pre-drill expectations of c. 300bopd are expected
to be established.
Brian Larkin, CEO commented:
"Our active and fully funded drilling programme in Egypt is
continuing with our next development well ASH-4 being spud whilst
operations continue on AJ-14 to initiate commercial flow rate
there. The ASH-4 development well has the potential to be an
important well for United from both a production and reserves
perspective as it is targeting one of the most prolific reservoirs
in Abu Sennan. Working with an experienced Operator on a licence
that is well understood, we look forward to drilling the ASH-4
development well before completing the 2022 programme with drilling
of the ASF-1X exploration well.
"On AJ-14, we are confident that the stimulation programme,
which has delivered positive outcomes on other wells on the field,
will result in consistent flow rates in the region of 300 bopd
gross and the well being quickly brought into production to
generate revenue and additional cashflow."
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.
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 sharan.dhami@uogplc.com
& ESG
Beaumont Cornish Limited
(Nominated Adviser)
Roland Cornish | Felicity
Geidt +44 (0) 20 7628 3396
Tennyson Securities (Joint
Broker)
Peter Krens +44 (0) 020 7186 9030
Optiva Securities Limited
(Joint Broker)
Christian Dennis +44 (0) 20 3137 1902
Camarco (Financial PR)
Georgia Edmonds | Emily +44 (0) 20 3757 4983 |
Hall | 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 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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END
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