United Oil & Gas PLC (AIM:UOG) Contingent Resources Report on the Maria Discovery, Central North Sea

United Oil & Gas PLC (AIM: “UOG”), the full-cycle oil and gas company with a portfolio of production, development, exploration and appraisal assets, is pleased to announce the results of an independent contingent resources audit conducted by Gaffney, Cline & Associates Limited (“GaffneyCline”) on the Maria Discovery (“Maria”), in Licence P2519, located in the UK Central North Sea (CNS). United holds a 100% working interest in the licence.

Summary

–  Mid-case 2C gross contingent resources for the Forties and Dornoch reservoirs of the Maria discovery are estimated at 6.3 mmbbls and 23.3Bcf (10.2 mmboe)

–  The range of resources estimated at Maria ranges from 3.3 mmbbls and 13.2 Bcf (5.5 mmboe) in the 1C case to 11.1 mmbbls and 39.3 Bcf (17.7 mmboe) in the 3C case

Gross Field Contingent Resources Summary Table (as at 31^st December 2022)

Source: Gaffney, Cline & Associates Limited. ⁽¹⁾ conversion factor 6 Bcf = 1mmboe.

 United Chief Executive Officer, Brian Larkin commented:

“ The independent audit further validates the work produced by our inhouse technical team, providing an independent mid-case estimate of 10.2 mmboe contingent resources at the Maria discovery. The report highlights the value of our 100% interest in this late stage appraisal and development asset that has the potential to deliver significant near term value to our shareholders. We are making good progress on potential options to maximise shareholder value from this licence and will provide further updates in due course.”  

 Basis of Preparation

Contingent Resources are those quantities of petroleum estimated, as of a given date, to be potentially recoverable from known accumulations using established technology or technology under development, but which are not currently considered to be commercially recoverable due to one or more contingencies. Contingent Resources, by definition, are not classified as reserves due to several conditions including but not limited to the uncertainties of future oil prices and performance of the initial pilot wells in the first phase of the field development of the project which must be resolved to ensure commerciality. There is no certainty that it will be commercially viable to produce any portion of the resources.

In the preparation of this report, GaffneyCline has used definitions contained within the Petroleum Resources Management System (PRMS), which was approved by the Society of Petroleum Engineers, the World Petroleum Council, the American Association of Petroleum Geologists, the Society of Petroleum Evaluation Engineers, the Society of Exploration Geophysicists, the Society of Petrophysicists and Well Log Analysts, and the European Association of Geoscientists and Engineers in June 2018, Version 1.03.

About Licence P2519

Licence P2519 includes Blocks 15/18e and 15/19c and covers an area of c. 225 km2.  The licence contains the existing Maria discovery in the Forties Sandstone, drilled by Shell/Esso in 1976, and is located near existing producing fields and infrastructure. The P2519 licence also contains two Jurassic discoveries, Brochel and Maol. Maol was drilled by Shell in 1987, and on test flowed at over 2,000 boepd.

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).

Glossary

1C – low estimate of Contingent Resources

2C – best estimate of Contingent Resources

3C – high estimate of Contingent Resources

bcf – billion standard cubic feet

boepd – barrels of oil equivalent per day

mmboe – million barrels of oil equivalent

mmbbls – million barrels of oil