United Oil & Gas PLC - Operational Update – Egypt
United Oil & Gas PLC / Index: AIM / Epic: UOG / Sector: Oil & Gas
United Oil and Gas plc
("United" or "the Company")
Operational Update -
· EDC-50 rig has been contracted to commence a drilling programme on the Abu Sennan concession
· Drilling will start with the ASH-3 development well, which is planned to commence in the coming weeks
· Expected follow-on targets include a low-risk exploration well, and a further development well on the ASH structure
· Working interest production from Abu Sennan on target to exceed previous guidance of 2,300 boepd for H2 2020
· ASH gas pipeline to boost production from start of 2021
United Oil & Gas PLC (AIM: "UOG"), the growing oil and gas company with a portfolio of production, development, exploration and appraisal assets offers an update on the Abu Sennan Licence in
The EDC-50 rig has a history of successful drilling in the Western Desert. It has been contracted for a drilling programme, starting with the ASH-3 development well, with low-cost rig-rates linked to oil-price. The campaign will be funded from operating cashflow. Subject to EGPC approvals, the rig is due to come on site before the end of the year, with drilling starting shortly after this. It is anticipated that the ASH-3 well will take up to 60 days to drill and test.
The ASH-3 well will target the producing
The ASH-3 development will be the first well due to be drilled by the EDC-50 rig in the 2021 campaign. United expect the second well in the drilling schedule to be an exploration well, targeting the Abu Roash reservoirs in the 4-way dip-closed Prospect D structure in the north of the Abu Sennan licence, close to the producing Al Jahraa field. This is a low risk well, located close to existing infrastructure, capable of being brought into production quickly.
Average production rates on the Abu Sennan Licence for the second half of 2020 to 29 November are c. 2,370 boepd net to United's working interest. This is a 20% increase to the average H1 production achieved after United's entry to the licence at the end of February. Average H2 production is likely to exceed the previous guidance of 2,300 boepd net.
In the near term, production is due to benefit from the completion of the ASH-2 gas pipeline, expected to be brought onstream at the start of 2021. When completed, the pipeline will substantially increase recovery rates and reduce the need to flare gas, improving the environmental performance of the licence. This pipeline has the potential to add up to 1,000 boepd of gross production.
In order to give greater visibility to shareholders, United will, from January, report production levels on a quarterly basis.
United Chief Executive Officer,
"Following an intense period of planning, we are delighted to be ready to re-commence drilling activities at the Abu Sennan licence, fully funded from our operating cashflow. We have worked closely with the operator, Kuwait Energy Egypt, over recent months to design a drilling campaign for 2021 and believe the scheduled wells can maintain the exceptional record of over 80% drilling success which has been achieved on the licence to date.
"The Abu Sennan licence continues to perform strongly and deliver low cost production growth. With over 35 mapped prospects on the licence and following on from the outstanding success of the ASH-2 and ES-5 wells where drilling outcomes significantly exceeded pre-drill expectations it offers excellent potential to deliver even greater returns for the licence partners. We look forward to updating shareholders on the progress of the ASH 3 development well in the coming weeks and months."
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").
United Oil & Gas Plc (Company)
Beaumont Cornish Limited (Nominated Adviser)
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+44 (0) 20 7628 3396
Optiva Securities Limited (Joint Broker)
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+44 (0) 20 3137 1902
Cenkos Securities Plc (Joint Broker)
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+44 (0) 20 7397 8900
+44 (0) 131 220 6939
Murray (PR Advisor)
+353 (0) 87 6909735
Camarco (Financial PR/IR)
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+44 (0) 20 3757 4983
Notes to Editors
United Oil & Gas is a high growth oil and gas company with a portfolio of low-risk, cash generative production and development assets across
Led by an experienced management team with a strong track record of growing full cycle businesses and partnered with established industry players, the Company 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/
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