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(Sharecast News) - United Oil announced the spudding of the ASW-1X exploration well in the Abu Sennan licence, onshore Egypt, on Tuesday.
The AIM-traded firm holds a 22% non-operating interest in the licence, which is operated by Kuwait Energy Egypt (KEE).
It said that following mobilisation of the Sinotharwa-1 rig to site, KEE had notified the joint venture partners that the well had now started drilling.
The exploration well was the fifth and final well to spud in the 2022 campaign, and was targeting unrisked mean recoverable resources estimated by United at around million gross barrels in multiple reservoirs.
United Oil said the ASW-1X prospect had been derisked by the HF36-5X discovery made in an adjacent block in 2020, and by the results of the 2022 seismic reprocessing on Abu Sennan, which provided improved imaging and definition of the ASW targets.
If successful, the well was expected to be quickly tied into existing facilities, adding additional production and revenue for the company.
"The ASW-1X well is targeting significant recoverable resources across multiple separate horizons," said chief executive officer Brian Larkin.
"This key exploration well fits with the joint venture's exploration strategy of not only directly targeting significant volumes, but also for the potential to de-risk a number of other similar structures in this part of the licence.
"In the case of a commercial discovery, ASW-1X would be completed as a production well and, subject to the granting of a development permit, be brought into production thereafter."
At 1330 GMT, shares in United Oil & Gas were up 4.54% at 1.44p.
Reporting by Josh White for Sharecast.com.
