United Oil & Gas PLC - AIM-listed oil & gas company with assets in Italy, UK, Jamaica and Egypt - Lowers full-year guidance for its Abu Sennan licence in Egypt to 2,100 to 2,300 average barrels of oil equivalent each day, from 2,500 to 2,700 barrels previously. In the first half of 2021, Abu Sennan averaged 2,730 daily barrels of oil equivalent the company notes.
Reduces guidance to reflect the increased water cut noted at the Ash field's three producing wells since July. In particular, the water cut has increased faster than expected at the Ash-2 well, it adds. Says the Ash field accounts for around 60% of oil production on the Abu Sennan licence since the start of 2020. Notes that the six additional fields on the Abu Sennan licence are unaffected by this issue.
"The [joint venture] partners are assessing the impact this [water cut issue] may have on the Ash field reserves and resources, which represent 36% of the Abu Sennan licence oil reserves at end 2020. The annual independent reserves report will be completed at the end of December and will be published in our full year results," the company adds.
Also reports good drilling progress at its ASX-1X exploration well, which began on August 14. Expects to reach primary reservoir targets at ASX-1X in the next two weeks. Says its joint venture partners expect to add another development well to the 2021 drilling programme.
Current stock price: 2.72 pence, down 18% on Monday afternoon
Year-to-date change: down 8.7%
By Scarlett Butler; scarlettbutler@alliancenews.com
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United Oil&gas (UOG)