Last checked at 15 Mar 2022 07:00
United Oil & Gas PLC / Index: AIM / Epic: UOG / Sector: Oil & Gas
15 March 2022
United Oil and Gas Plc
("United" "the Group" or the "Company")
ASD-2 Well Update
United Oil & Gas PLC the growing oil and gas company with a portfolio of production, development, exploration and appraisal assets is pleased to announce an update on the drilling of the ASD-2 development well (ASD-2) in the Abu Sennan licence, onshore Egypt. United holds a 22% working interest in the licence, which is operated by Kuwait Energy Egypt.
Highlights
· ASD-2 development well encountered a total of at least 25.5m of net pay across multiple oil-bearing reservoirs
· ASD-2 is the eighth consecutive successful well at Abu Sennan since United acquired its interest in the licence
The ASD-2 development well, which was drilled to test the north-western culmination of the commercial discovery in the ASD field last year, safely reached total depth of 3,631 metres. The well has now been logged and is interpreted to have encountered at least 25.5 metres of net oil pay across the Abu Roash and Bahariya reservoirs. An estimated 20 metres of net pay was encountered in the Abu Roash-E reservoir, significantly above pre-drill expectations. The well will be tested and completed in the coming days and brought immediately onstream through the existing ASD facilities, adding additional production and revenue for United. United will provide a further update to the market once the well has been brought onstream and flow-rates have been established.
Next well in the Egypt Drilling Programme
ASD-2 is the first well in the 2022 Abu Sennan drilling campaign. After completion of ASD-2, the ECDC-6 rig will be released and the campaign will continue with the Sino Tharwa-1 rig. Technical work to finalise the drilling locations at the Al Jahraa and ASH fields is ongoing, and as a result, the ASV-1X exploration well has now been brought forward in the drilling programme as the next well to be drilled. United estimate that the ASV-1X structure has the potential to hold over 2.5 million barrels gross mean recoverable resources. The well is expected to spud in the coming weeks.
United will be releasing its results for the full year ending 31 December 2021 on the 26 April 2022. In advance of this, the Company will provide its usual quarterly production update for Q1 2022.
United's Chief Executive Officer, Brian Larkin commented:
"We are really pleased with the result from the ASD-2 well, which provides a very positive start to the 2022 drilling campaign. Our production is highly leveraged to the current higher oil prices and oil/gas discoveries can be quickly brought on stream through existing facilities, generating immediate revenue for the Company. There remains significant potential within the Abu Sennan licence, and we are looking forward to drilling the upcoming ASV-1X exploration well. This well is targeting a United estimate of over 2.5 million barrels gross mean recoverable resources. The rig has been mobilised and we look forward to the well spudding in the coming weeks."
**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.
This announcement contains inside information for the purposes of Article 7 of Regulation 2014/596/EU which is part of domestic UK law pursuant to the Market Abuse (Amendment) (EU Exit) regulations (SI 2019/310).
Enquiries
| |
United Oil & Gas Plc (Company) | |
Brian Larkin, CEO | brian.larkin@uogplc.com |
Sharan Dhami, Head of IR & ESG | sharan.dhami@uogplc.com |
Beaumont Cornish Limited (Nominated Adviser) | |
Roland Cornish | Felicity Geidt | +44 (0) 20 7628 3396 |
Optiva Securities Limited (Joint Broker) | |
Christian Dennis | +44 (0) 20 3137 1902 |
Tennyson Securities (Joint Broker) | |
Peter Krens | +44 (0) 020 7186 9030 |
Camarco (Financial PR/IR) | |
Billy Clegg | James Crothers | Tessa Gough-Allen | +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 www.uogplc.com