TIDMUOG
RNS Number : 5842T
United Oil & Gas PLC
21 March 2023
United Oil & Gas PLC / Index: AIM / Epic: UOG / Sector: Oil
& Gas
21 March 2023
United Oil and Gas plc
("United" or "the Company")
Commencement of Production from the ASH-8 well
United Oil & Gas PLC (AIM: "UOG"), the full-cycle oil and
gas company with a portfolio of production, development,
exploration and appraisal assets is pleased to announce an update
on the ASH-8 development well ("ASH-8") in the Abu Sennan licence,
onshore Egypt. United holds a 22% working interest in the licence,
which is operated by Kuwait Energy Egypt.
Summary
- ASH-8 well commenced production on 16 March at an initial
stabilised rate of c. 2,980 bopd and 2.64 mmscf/d gross (c. 656
bopd and 0.58 mmscf/d net)
- Production has come onstream six weeks ahead of the
anticipated schedule, at a higher rate than originally forecast
resulting in group H1 production now expected to be at the upper
end of the guided range of 700 - 900 bopd net
ASH-8
As previously announced, the ASH-8 development well was
interpreted to have encountered 22 metres of net oil pay in the
primary Alam El Bueib ("AEB") reservoir target, in line with
pre-drill expectations. After reaching TD on the 21 February, the
well was completed and tested on a number of different choke sizes,
as summarised in the table below.
Choke Size Duration of Average gross flow rate
test
Oil (bopd) Gas (mmscf/d) Combined
(boepd)
----------- -------------- ---------
24/64" 16.5 hours 1,737 2.2 2,177
------------ ----------- -------------- ---------
32/64" 6.5 hours 3,114 3.3 3,774
------------ ----------- -------------- ---------
64/64" 6.5 hours 6,023 8.2 7,663
------------ ----------- -------------- ---------
The well has now been tied into the existing facilities and
brought on stream at an initial rate of c. 2,980 bopd and 2.64
mmscf/d gross (656 bopd and 0.58 mmscf/d net) on a 32/64" choke.
The production from the well will continue to be monitored, so that
the long-term production potential can be assessed. However, the
currently stable rates coupled with the lack of water-cut and the
pressures observed in the well provide positive indicators for its
longer-term potential. With the well coming onstream nearly six
weeks ahead of schedule, and with rates above pre-drill
expectations, the Company's H1 actual production is expected to be
at the upper end of the production guidance of 700-900 bopd
net.
The ST-1 rig is now moving towards the ASD-3 location to drill
the second development well in the 2023 drilling programme, which
is expected to spud in the coming weeks.
Brian Larkin, CEO, commented:
"We are very happy with the results from the ASH-8 well, and it
is pleasing to see the well being brought on stream at a stabilised
production rate of over 2,900 bopd some six weeks ahead of
schedule. This is the fifth well in the highly productive ASH
field, which has so far produced in excess of 4 million barrels of
oil. The successful result at ASH-8 will have a positive impact on
group production levels and revenue and further highlights the
long-term value of the field. We look forward to drilling the next
development well at ASD-3 on a location that was high-graded by the
JV Partners following the success of the ASD-2 well in March
2022."
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
TD - Total Depth
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 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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END
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