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(Alliance News) - United Oil & Gas PLC on Wednesday said the testing performance of a soon-to-be-acquired well in Egypt proves the project's potential.
UOG announced the USD16 million purchase of Rockhopper Exploration PLC's Egyptian assets in June. This includes a 22% stake in the Abu Sennan concession in Egypt's Western desert.
The ASH-2 well on Abu Sennan came on stream on January 2, and has "consistently" been producing at over 3,000 barrels of oil per day, equating to 660 barrels net to Rockhopper.
UOG said gross production from the entire Abu Sennan licence since ASH-2 came online has been 8,000 barrels of oil equivalent per day on average, of which 1,760 barrels is net to Rockhopper.
The Egyptian government is currently reviewing the deed of assignment for the acquisition, UOG said, and a completion date for the purchase will be announced once approval is given.
Brian Larkin, the chief executive of UOG, said: "As the test results to date on the ASH-2 well demonstrate, Abu Sennan is a producing asset with considerable upside potential.
"While the interpretation of the data is continuing, it is clear the intersected reservoirs have excellent production capacity. With this in mind, we are looking forward to completing this transformational acquisition and working with our soon-to-be joint venture partners to optimise the field development plan for Abu Sennan."
UOG shares were 5.2% higher on Wednesday morning in London at a price of 3.81 pence each.
By George Collard; georgecollard@alliancenews.com
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