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(Sharecast News) - United Oil & Gas updated the market on its operations in the Abu Sennan licence onshore Egypt on Tuesday, in which it holds a 22% non-operating interest alongside operator Kuwait Energy Egypt.
The AIM-traded firm said drilling had started on the ASD-3 development well, around 1.2 kilometres to the north-west of the ASD-2 well.
It noted that the ASD-2 well was drilled in March last year, and had recovered around 400,000 barrels since it came into production just over a year ago.
The ASD-3 well had primary targets in the Abu Roash-E (ARE) and Abu Roash-C (ARC) reservoirs, as well as secondary objectives in the Lower Bahariya.
United said the well had a prognosed total depth of 3,649 metres, and was expected to take about 55 days to drill and complete.
In addition, United Oil reported that its net oil production from Abu Sennan for the first quarter averaged 841 barrels of oil per day.
The exit rate for the quarter was 1,275 barrels of oil per day, and 170 equivalent barrels of gas per day, including the contribution from the ASH-8 well.
It explained that the ASH-8 well had continued to flow at a stable rate with no water-cut since it came into production on 16 March.
"We are happy to report that the next well in our 2023 drilling campaign has spud at ASD-3, in an area of the field we believe contains extensive unrecovered resources," said chief executive officer Brian Larkin.
"We are excited by the potential that this well is planned to test and the follow-on development drilling targets it could unlock in a success case.
"It is also really pleasing to see the continued strong production performance from the ASH-8 well, which supports our view that there is significant long term value remaining in the Abu Sennan licence."
At 1115 BST, shares in United Oil & Gas were up 20.83% at 1.45p.
Reporting by Josh White for Sharecast.com.
