United Oil&gas Regulatory News (UOG)

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

19 October 2021

United Oil and Gas Plc

("United" "the Group" or the "Company")

 Commencement of Production at ASX-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 the following update on the ASX-1X well in the Abu Sennan licence, onshore Egypt.

Highlights

· Commercial discovery declared at the ASX-1X exploration well

· Approval granted from the Minister of Petroleum of the award of a development lease covering this new discovery on 12 October 2021

· Partner confidence and experience in Abu Roash C ("AR-C") reservoirs led to the well being brought straight onto production three weeks after initial drilling results

· Initial production flow rates from the AR-C of 870 bopd gross (191 bopd net) on a 64/64" choke

· ASX-1X is the second exploration success to be brought on stream on the Abu Sennan licence in 2021

ASX-1X Well

The ASX-1X well is located 7km to the north of the producing Al Jahraa Field. It safely reached a Total Depth of 4,272m, several days ahead of schedule and under-budget.

Preliminary results suggest the well encountered a combined net pay total of at least 10m across a number of reservoir intervals, including the primary reservoir targets of the AR-C. Based on further interpretation of the well data, there was sufficient confidence for the operator, Kuwait Energy Egypt, to submit notice of a commercial discovery at ASX-1X and an application for a 11.92km2 development lease to EGPC. On 12 October 2021, the Minister of Petroleum approved the award of this ninth development lease within the Abu Sennan licence. Production has now commenced from the AR-C reservoir with initial gross rates of 870 bopd (191 bopd net), achieved on a 64/64" choke. This is an exceptionally quick turnaround of just three weeks from announcing the initial exploration well results to securing a development lease and bringing this new discovery onto production and generating revenue.

Al Jahraa-13 Development Well

The Al Jahraa-13 development well will target the Upper and Lower Bahariya reservoirs in the Al Jahraa Field and follows up on the success that was achieved with the Al Jahraa-8st1 well. The ECDC-6 rig is shortly expected to mobilise from its current location in the Eastern Desert, with the well-spud expected within the coming weeks.

United Chief Executive Officer, Brian Larkin commented:

"The Commercial discovery at ASX-1X well and the fast track to production will enhance revenue and further increase the proven reserves on the licence.

Another new discovery is a further positive sign for the remaining exploration potential within licence, and we will continue to work with our Joint Venture partners to prioritise these opportunities which can be brought into production in short time frames.

We are looking forward to the spudding of the Al Jahraa 13 development well in the coming weeks. This will be the fifth well in our 2021 drilling programme. 

With the excellent record of exploration and development drilling success we have had on Abu Sennan to date, we are very excited about the four well drilling campaign next year and beyond, and the potential that the licence offers for years to come."

ENDS 

This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018 ("MAR"), and is disclosed in accordance with the Company's obligations under Article 17 of MAR.

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

Enquiries

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

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