Last checked at 2 Jun 2021 07:00
/+United Oil & Gas PLC / Index: AIM / Epic: UOG / Sector: Oil & Gas
02 June 2021
United Oil and Gas plc
("United" or "the Company")
Abu Sennan Update and Approval of Award of Development Lease over ASD-1X Discovery
United Oil & Gas PLC (AIM: "UOG"), the growing oil and gas company with a portfolio of production, development, exploration and appraisal assets, is pleased to provide an update on the Abu Sennan Licence, Egypt in which United holds a 22% non-operating interest.
Highlights
· Approval from the Minister of Petroleum of the award of a development lease covering the ASD-1X discovery
· Commencement of production from the ASD-1X well with initial gross rates of 1,295 bopd (285 bopd net to UOG's working interest)
o Commencement of production from the ASD-1X exploration well achieved less than two months from the announcement of the initial discovery in April 2021
· Successful workover at the ASH-1ST2 well, adding over 1,000 bopd gross (220 bopd net) to production from the ASH Field
United Chief Executive Officer, Brian Larkin commented:
"The speed at which the Joint Venture is developing Abu Sennan is demonstrative of the excitement we share for the long-term potential of the licence, which continues to deliver for the Company. Today's announcement is yet more positive news, with the approval of the development lease at ASD-1X and the start of production from that well. We would also expect this result to add to the proven reserves on the licence.
"In tandem with exploration success in Abu Sennan, the encouraging result from the ASH-1ST2 workover will provide a further boost to production, and will also help increase our understanding of the ASH Field.
"With the EDC-50 rig still drilling the Al Jahraa-8 development well, we look forward to providing further updates on the continuing 2021 Abu Sennan drilling campaign in due course."
Approval of Development Lease at the ASD-1X Discovery
The ASD-1X exploration well, located 12km to the north-east of the producing Al Jahraa Field, safely reached Total Depth (TD) of 3,750m MD on 30 March, several days ahead of schedule and under-budget. The well encountered 22m net pay, and on preliminary testing flowed at gross rates of 1,619 bopd from the Lower Bahariya reservoir and 1,215 bopd from the Abu Roash "C" reservoir.
Based on these preliminary test results, notice of a commercial discovery and an application for a development lease at ASD-1X were submitted to EGPC by the operator, Kuwait Energy Egypt ("KEE"). On 26th May, the Minister of Petroleum approved the award of this 8th Development Lease within the Abu Sennan licence, and production has now commenced from the well, with combined initial gross rates of 1,295 bopd being achieved from the ARC and Lower Bahariya reservoirs. This is an exceptionally quick turnaround of under two months from discovery to production, and at these rates, payback on the well would be expected in less than a year.
Successful Workover at ASH-1ST2
A workover at the ASH-1ST2 well was successfully completed in May. The workover involved replacing the existing tubing, cleaning the wellbore, and carrying out reservoir stimulation work. Since completion and initial testing, the well has been flowing at gross rates of over 1,200 bopd (compared to c. 200 bopd pre-workover), further boosting production from the asset.
**ENDS**
Jonathan Leather, an Executive Director of the Company, who has over 20 years of relevant experience in the oil and gas industry, has reviewed and approved the information contained in this announcement. Dr Jonathan Leather is a qualified person as defined in the guidance note for Mining Oil & Gas Companies of the London Stock Exchange and is a member of the Petroleum Exploration Society of Great Britain and the Society of Petroleum Engineers.
The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 ("MAR") as it forms part of UK Domestic Law by virtue of the European Union (Withdrawal) Act 2018.
Glossary:
Boepd - barrels of oil equivalent per day
Bopd - barrels of oil per day
Mmscf/d - million standard cubic feet of gas per day
MD - Measured Depth
TVDSS - Total Vertical Depth Subsea
United Oil & Gas Plc (Company) |
|
Brian Larkin, CEO | brian.larkin@uogplc.com |
Beaumont Cornish Limited (Nominated Adviser) | |
Roland Cornish and Felicity Geidt | +44 (0) 20 7628 3396 |
Optiva Securities Limited (Broker) | |
Christian Dennis | +44 (0) 20 3137 1902 |
Murray (PR Advisor) | +353 (0) 87 6909735 |
Joe Heron | jheron@murrayconsultants.ie |
Camarco (Financial PR/IR) | |
Billy Clegg James Crothers | +44 (0) 20 3757 4983 uog@camarco.co.uk |
Notes to Editors
United Oil & Gas is a high growth oil and gas company with a portfolio of low-risk, cash generative production, development, appraisal and exploration assets across Egypt, UK, Italy and a high impact exploration licence in Jamaica.
The business is led by an experienced management team with a strong track record of growing full cycle businesses, partnered with established industry players and is well positioned to deliver future growth through portfolio optimisation and targeted acquisitions.
United Oil & Gas is listed on the AIM market of the London Stock Exchange. For further information on United Oil and Gas please visit https://www.uogplc.com/