TIDMUOG
RNS Number : 4258H
United Oil & Gas PLC
24 November 2022
United Oil & Gas PLC / Index: AIM / Epic: UOG / Sector: Oil
& Gas
24 November 2022
United Oil and Gas plc
("United" or "the Company")
Egypt operations update
United Oil & Gas PLC (AIM: "UOG"), the growing oil and gas
company with a portfolio of production, development, exploration
and appraisal assets, announces an update on the ASH-4 development
well ("ASH-4") in the Abu Sennan licence, onshore Egypt. United
holds a 22% non-operating interest in the Abu Sennan licence, which
is operated by Kuwait Energy Egypt.
ASH-4 well update
As previously announced, ASH-4, a step-out development well in
the ASH field, encountered 20 metres of net pay through the primary
Alam El Bueib ("AEB") reservoir target. Preliminary well-test
results indicated average flow rates of 1,325 bopd and 1.8 mmscf/d
(c. 1,685 boepd gross; 371 boepd net working interest) on a 32/64"
choke, with no water production and encouraging reservoir
pressure.
The well was brought on stream on 17 November 2022 on the 32/64"
choke size and although initial flow-rates were in excess of the
well-test average, over recent days the rates from the well have
sharply declined, suggesting that the well is connected to a
smaller volume of oil than had been expected pre-drill. The choke
size has now been reduced to 24/64" to manage the reservoir and
production rates from the well, which are expected to stabilise
over the coming days, but these will be at a lower level than had
previously been anticipated.
The ASH-4 well is located in the northern, more heavily faulted
part of the ASH field and appears to have intersected reservoir
that is separated from the currently producing wells. The
additional data and insights from ASH-4 are already being
incorporated into updating the models and building on our
understanding of the field. The next development well planned at
ASH lies in the southern, better-imaged part of the field, and is
in a location independent of these updated ASH-4 results.
Full year 2022 production guidance
Production from the Abu Sennan licence as at 22 November was
1,027 boepd net to the Company's working interest. This production
rate is below expectations, primarily due to the lower than
anticipated production levels from ASH-4, and due to delays to a
number of maintenance workovers to return production from existing
wells, which are now expected to be completed in the coming weeks.
In addition to these maintenance workovers, the stimulation of
development well AJ-14 is also expected before the end of the year.
Consequently, the Company is revising its current 2022 full year
production guidance for the Abu Sennan licence to 1,300-1,325 boepd
net from 1,450-1,500 boepd net. This updated guidance does not
include any contribution from the workovers that are still to be
completed in late Q4 2022, which if successful could deliver up to
an additional 175 boepd net to our production levels as we move
into 2023.
United Chief Executive Officer, Brian Larkin commented:
"Although the initial production from the ASH-4 development well
has not performed as we had expected, it is contributing over 150
barrels to net production today and the data gathered has helped
the Joint Venture (JV) partners increase our understanding of the
subsurface and the ASH field, which is invaluable in planning
future work programmes. We are working with our JV partners to
finalise our plans for an active drilling programme for 2023 which
will include at least one development well on ASH, and this is
testament to the value that the partners see at Abu Sennan. By year
end we expect to conclude our Egypt 2022 work programme with the
completion of a number of production enhancing workovers, the
stimulation programme on the AJ-14 well and the spudding of the
ASW-1X exploration well."
END
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).
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
JV Partners- Joint Venture Partners
mmscf/d - million standard cubic feet per day
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 Hall +44 (0) 20 3757 4983 |
| Sam Morris 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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