United Oil & Gas PLC (AIM: “UOG”), the growing oil and gas company with a portfolio of production, development, exploration and appraisal assets, issues the following trading update for the full year 2020 and guidance for 2021.
This is in advance of the Group’s Full Year Results which are expected to be released in the second half of April 2021. The information contained herein has not been audited and may be subject to further review and amendment.
United Chief Executive Officer, Brian Larkin commented:
“2020 was a successful year for United, delivering an excellent operational and financial performance, despite a challenging commodity price environment and the global pandemic. We successfully integrated our Egyptian assets, delivering average 2020 working interest production of 2,195 boepd, creating revenue of c. $9.0 to $9.2m (net of government take) for the ten months since completion of the acquisition.
“United begins 2021 in strong position with a balanced portfolio, low-cost growing production, high quality reserves and a healthy balance sheet. The business is well placed to benefit from rising hydrocarbon prices but also well hedged to protect against volatility. Our fully funded, multi-well drilling programme in Egypt has begun with the result of the ASH-3 well expected shortly. This low-risk well has the potential to build on the successes of 2020 by delivering increased production and reserves. A formal farm-out process will shortly commence seeking partners to join us in unlocking the potential in our high impact Walton Morant exploration licence in Jamaica, and our Italian asset remains on track for first gas in 2021.”
Financial and Operational Update
FY 2020 Performance
· Group working interest production 2,195 boepd *
· FY 2020 Total Revenues of c. $9.0 to $9.2m**
· Realised Oil Price c. $37.7/bbl *
· Group Cash Balance of $2.1m
· Total Cash Collections of c. $9.8m *
· Cash Capital Expenditure c. $2.5m
* From completion of the Rockhopper Egypt acquisition to period end, 28th February 2020 to 31st December 2020
** 22% working interest net of Government Take
· Group working interest production in Egypt is forecast to average between 2,300 and 2,500 boepd for H1 2021. Further updates will be provided as the 2021 drilling programme progresses
· A reserves uplift is expected following the success of the El Salmiya 5 and ASH 2 wells in 2020 (subject to independent certification with publication expected during H1-21)
· Group Capital Expenditure is forecast to be $5.3m, fully funded from existing operations
o c. $4.7m to be invested in Egypt with two firm wells, five workovers, and facilities upgrades
o c. $0.6m to be invested in our Jamaican, Italian and UK assets
· Flexibility exists within the Abu Sennan joint venture and the EDC-50 rig contract to add up to two further wells in the Abu Sennan drilling campaign subject to well results and the commodity price environment
boepd – barrels of oil equivalent per day
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 https://www.uogplc.com/
If anyone reads this article found it useful, helpful? Then please subscribe www.share-talk.com or follow SHARE TALK on our Twitter page for future updates.
Terms of Website Use
All information is provided on an as-is basis. Where we allow Bloggers to publish articles on our platform please note these are not our opinions or views and we have no affiliation with the companies mentioned