United Oil&gas Regulatory News (UOG)

/+United Oil & Gas PLC / Index: AIM / Epic: UOG / Sector: Oil & Gas

04 May 2021

United Oil and Gas plc

("United" or "the Company")

ASD-1X Well Test Update and Submission of Notice of Commercial 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 the following update on the testing of the ASD-1X exploration well in the Abu Sennan concession, onshore Egypt and the spudding of the AJ-8 development well. United holds a 22% non-operating interest in Abu Sennan, which is operated by Kuwait Energy Egypt ("KEE").

Highlights

· Notice of a commercial discovery and an application for a development lease covering the ASD-1X discovery have been submitted to EGPC by the operator, KEE

· The ASD-1X well tested both the Lower Bahariya and Abu Roash C ("ARC") reservoirs

· Preliminary short-term test results from the Lower Bahariya reservoir indicate:

o A maximum flow rate of 1,619 bopd and 2.840 mmscf/d (c. 2,187 boepd gross; 481 boepd net) on a 64/64" choke

o A rate of 852 bopd and 1.600 mmscf/d (c. 1,172 boepd gross; 258 boepd net) on a more constrained 32/64" choke

· Preliminary short-term test results from the Abu Roash C ("ARC") reservoir indicate:

o A maximum flow rate of 1,215 bopd and 1.371 mmscf/d (c. 1,489 boepd gross; 328 boepd net) on a 64/64" choke

o A rate of 661 bopd and 0.632 mmscf/d (c. 787 boepd gross; 173 boepd net) on a more constrained 24/64" choke

· Headline test results from both reservoirs exceed United's internal pre - drill expectations.

· The EDC-50 rig has now moved to the Al Jahraa Field within the Abu Sennan licence, where drilling of the AJ-8 development well commenced on 2nd May

United Chief Executive Officer, Brian Larkin commented:

"Today's announcement is yet another positive result from Abu Sennan, with the notice of a commercial discovery at ASD-1X, and it is very pleasing to see the application for a development lease being submitted. This will not only enhance production but will further increase the proven reserves on the licence.

"The new discovery at ASD-1X is also a positive sign for the remaining exploration potential within the Abu Sennan concession, and we will continue to work with our JV partners to prioritise these opportunities which can ultimately be brought into production in short time frames.

"With the EDC-50 rig now drilling the AJ-8 development well, we look forward to providing further updates on the continuing 2021 Abu Sennan drilling campaign in due course."

ASD-1X Well

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.

Preliminary results suggest the well encountered a combined net pay total of at least 22m 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.

The ASD-1X well has now been successfully tested from both the Lower Bahariya and Abu Roash C ("ARC") reservoirs. Preliminary short-term test results from the Lower Bahariya reservoir indicate a maximum flow rate of 1,619 bopd and 2.84 mmscf/d (c. 2,187 boepd gross; 481 boepd net) on a 64/64" choke, and a rate of 852 bopd and 1.6 mmscf/d (c. 1,172 boepd gross; 258 boepd net) on a more constrained 32/64" choke. The preliminary short-term test results from the Abu Roash C ("ARC") reservoir indicate a maximum flow rate of 1,215 bopd and 1.371 mmscf/d (c. 1,489 boepd gross; 328 boepd net) on a 64/64" choke, and a rate of 661 bopd and 0.632 mmscf/d (c. 787 boepd gross; 173 boepd net) on a more constrained 24/64" choke.

Based on these preliminary test results, notice of a commercial discovery and an application for a development lease at ASD-1X have been submitted to EGPC by the operator, KEE. Production from what would be the 8th development lease within the Abu Sennan licence, would be expected to commence shortly after approvals are granted.

The well was drilled by the EDC-50 rig, which has now been moved to the Al Jahraa Field within the Abu Sennan concession, where the drilling of the AJ-8 development well commenced on 2nd May. This well will target the Abu Roash and Bahariya reservoirs in an undrained portion of the Al Jahraa field.

**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

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/