United Oil&gas Share News (UOG)

(Sharecast News) - United Oil & Gas updated the market on the testing of the Al Jahraa-8 development well on the Abu Sennan concession, onshore Egypt on Monday, where it holds a 22% working interest alongside operator Kuwait Energy Egypt.
The AIM-traded firm said preliminary short-term test results from the Lower Bahariya reservoir indicated a maximum flow rate of 2,093 barrels of oil and 3.63 million standard cubic feet of gas per day, on a 64/64-inch choke.

A rate of 1,189 barrels of oil and 1.22 million standard cubic feet of gas per day was reported on a more constrained 26/64-inch choke.

Those headline test results exceeded United's internal pre-drill expectations, with the company adding that the well would be brought onto production from the Lower Bahriya reservoir in the coming days.

The EDC-50 rig would now move seven kilometres north of the Al Jahraa Field, where drilling of the ASX-1X exploration well was due to start in the coming days.

"We are delighted to announce further positive news from the AJ-8 development well; continuing our run of success on the Abu Sennan licence," said chief executive officer Brian Larkin.

"With over 40 metres of net pay previously reported, the AJ-8 well was expected to flow at good rates, but it is great to have exceeded our expectations with these encouraging initial test rates recorded from the Lower Bahariya."

Larkin said the company would now work with its partners to bring the well on-stream in the coming days, at a rate which would maximise long-term production and contribute to its low-cost production base.

"We will move ahead to spud the ASX-1X exploration well, the next step in our plans to further realise the value of this exceptional licence."

At 1118 BST, shares in United Oil & Gas were down 1.88% at 3,78p.