(Alliance News) - United Oil & Gas PLC on Wednesday said it has signed the rig contract for the ASH-3 well at the Abu Sennan Licence in Egypt and is on track to exceed its previous production guidance.
United Oil is an oil & gas company with a portfolio of production, development, exploration and appraisal assets in Egypt, Italy, Jamaica, and the UK.
United Oil said the EDC-50 rig is due to come on site before the end of the year, with drilling to start shortly after this.
Chief Executive Brian Larkin said: "Following an intense period of planning, we are delighted to be ready to re-commence drilling activities at the Abu Sennan licence, fully funded from our operating cashflow."
The rig will target an already-producing well called Alam El Bueib first, with the second well in the drilling schedule to be an exploration well.
"This is a low risk well, located close to existing infrastructure, capable of being brought into production quickly," United Oil said.
The campaign will be funded from operating cashflow, the company said.
United Oil added that average production in the second half of 2020 is likely to exceed the previous guidance of 2,300 barrels of oil equivalent net.
United Oil said: "In the near term, production is due to benefit from the completion of the ASH-2 gas pipeline, expected to be brought onstream at the start of 2021.When completed, the pipeline will substantially increase recovery rates and reduce the need to flare gas, improving the environmental performance of the licence. This pipeline has the potential to add up to 1,000 barrels of oil equivalent of gross production."
United Oil & Gas shares were up 5.3% at 2.79 pence each in London on Wednesday morning.
By Greg Roxburgh; gregroxburgh@alliancenews.com
Copyright 2020 Alliance News Limited. All Rights Reserved.
United Oil&gas (UOG)