United Oil&gas Share News (UOG)

(Sharecast News) - United Oil & Gas updated the market on the drilling of the ASD-1X exploration well in the Abu Sennan concession, onshore Egypt on Tuesday, reporting that preliminary results suggested the well encountered a total of at least 22 metres of net oil pay interpreted across a number of reservoirs, including the Abu Roash C (AR-C), Abu Roash E (AR-E), Lower Bahariya and Kharita Formations.
The AIM-traded firm holds a 22% working interest in the licence, which is operated by Kuwait Energy Egypt.

It said well-testing was now planned, and if successful, would be followed by an application to the Egyptian General Petroleum Corporation (EGPC) for a development lease over the new discovery.

The ASD-1X exploration well, located 12 kilometres to the north-east of the producing Al Jahraa Field, reached a total depth of 3,750 metres on 30 March, several days ahead of schedule and under-budget.

United said the preliminary results suggested the well encountered a combined net pay total of at least 22 metres across a number of reservoir intervals, including the primary reservoir targets of the AR-C and AR-E, as well as the Lower Bahariya and Kharita Formations.

Completion of the well and well-testing of those reservoirs was planned in the coming weeks, and if successful, would lead to an application to EGPC being made for a development lease over the new discovery.

The well was drilled by the EDC-50 rig, which, after completion, would move to the Al Jahraa Field within the Abu Sennan concession to start drilling the AJ-8 development well.

That well would target the Abu Roash and Bahariya reservoirs in an undrained portion of the Al Jahraa field.

"Today's announcement is another positive result from Abu Sennan, which, initial interpretations suggest, is in line with our pre-drill estimates," said chief executive officer Brian Larkin.

"With the well testing set to begin shortly, we look forward to understanding the full potential of the ASD-1X well."

Larkin said a number of additional targets and leads had been identified within the Abu Sennan concession, with the results of ASD-1X and other recent wells set to better inform the company's understanding of the acreage.

"We will continue to work with our joint venture partners to prioritise these opportunities which can ultimately be brought into production in short time frames.

"With the EDC-50 rig moving to drill the AJ-8 development well after the completion of ASD-1X, we look forward to providing further updates on the continuing 2021 Abu Sennan drilling campaign."

At 1330 BST, shares in United Oil & Gas were up 4.17% at 5p.