Last checked at 15 May 2018 07:00
United Oil & Gas PLC / Index: LSE / Epic: UOG / Sector: Oil & Gas
15th May 2018
Letter of Intent Signed for Provision of Rig to Drill Colter Well
United Oil & Gas Plc (United or The Company), the London Stock Exchange listed oil and gas exploration and development company, is pleased to note the announcement made today by Corallian Energy Limited ("Corallian Energy"), our partner in and operator of licence P1918 (UKCS Block 98/11a), that it has entered into a Letter of Intent with UK drilling company Ensco U.K. for the provision of a jack-up rig to drill the Colter Well. Outlined in the Letter of Intent the parties have agreed, subject to approvals and consents, headline terms for a suitable unit to conduct drilling operations in Q3/4 2018.
The Colter discovery is adjacent to the largest onshore oil field in Europe, Wytch Farm, which has produced in excess of 450 million barrels of oil. Colter was originally drilled by offshore well 98/11-3 in 1986 which recovered oil on test from a 10.5 metres oil column within the Triassic Sherwood Sandstone, the main reservoir at Wytch Farm. More recently, merged and reprocessed 3D seismic data has indicated potential up-dip of the discovery well. The target is in shallow water, which enables the use of an offshore jack-up rig, keeping costs to a minimum. United estimates the Company's share of drilling costs to be under £1m.
Brian Larkin, CEO United Oil and Gas:
"We are delighted to see continuing progress on this exciting licence. The Colter Well will be drilled up-dip of an existing discovery in an established oil region. The addition of an excellent drilling partner, Ensco UK, will further strengthen our chances of success."
"This well is consistent with United's strategy of targeting near-term, low-risk development opportunities in Europe whilst utilising the industry experience of our management team to pursue higher-risk, high-impact opportunities in Africa and South America."
ENDS
This announcement contains inside information for the purposes of Article 7 of Regulation (EU) 596/2014.
For more information please visit the Company's website at www.uogplc.com or contact:
United Oil & Gas Plc (Company) |
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Brian Larkin | brian.larkin@uogplc.com |
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Optiva Securities Limited (Broker) |
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Christian Dennis | +44 (0) 20 3137 1902 |
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Beaumont Cornish Limited (Financial Adviser) |
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Roland Cornish and Felicity Geidt | +44 (0) 20 7628 3396 |
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Murray (PR Advisor) |
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Joe Heron | +353 (0) 87 6909735 |
| jheron@murrayconsultants.ie |
Notes to Editors
United Oil and Gas
United Oil & Gas plc (UOG) is listed on the main market of the London Stock Exchange. United was established to explore, appraise and develop low-risk assets in Europe and North Africa and to develop higher-risk, higher-impact exploration projects in Latin America and Africa.
The following table outlines the Company's interests in the following licences:
Country | Licence | Operator | United Interest |
Italy | Podere Gallina Licence | Po Valley Energy Limited | 20% |
United Kingdom | Waddock Cross Field | Egdon Resources UK Limited | 26.25% |
United Kingdom | PL090 Exploration | Egdon Resources UK Limited | 18.95% |
United Kingdom | P1918* | Corallian Energy Limited | 10%** |
United Kingdom | PEDL 330 | Corallian Energy Limited | 10%** |
United Kingdom | PEDL 345 | Corallian Energy Limited | 10%** |
Jamaica | Walton-Morant* | Tullow Jamaica Ltd | 20% |
*Offshore
** Option to acquire a further 10%
About Ensco U.K. Limited
Ensco U.K. Ltd, a subsidiary of Ensco plc, a global provider of offshore drilling services to the petroleum industry. The Ensco Group's extensive fleet of 64 offshore units is the world's largest and includes drillships, dynamically-positioned semisubmersibles, moored semisubmersibles and jack-up rigs. Ensco plc is quoted on the New York Stock Exchange and is headquartered in London, with offices around the world.