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 announce the spudding of the ASD-1X exploration well in the Abu Sennan Licence (the “Licence”), Egypt on 6 March. United holds a 22% working interest in the Licence, which is operated by Kuwait Energy Egypt.
· Drilling of the ASD-1X exploration well, which will test a number of stacked reservoir targets, has commenced
· The well will take up to 60 days to drill and is funded entirely from operational cash flow
ASD-1X is a vertical exploration well, located 12km to the north-east of the producing Al Jahraa Field and primarily targeting the sandstone reservoirs of the Abu Roash “C” and “E”, with the Abu Roash “G” reservoir providing a secondary target. The targeted reservoirs are expected to be encountered between 3,000m and 3,500m measured depth.
The well will be drilled by the EDC-50 rig, which recently completed the successful ASH-3 development well ahead of schedule and under-budget. It is anticipated that the ASD-1X well will take up to 60 days to drill and complete; if successful the well can rapidly be placed on production through existing infrastructure.
ASD-1X is the second well to be drilled in the 2021 campaign, which is entirely funded from operational cashflow. Subject to final approvals, the joint venture partnership has now agreed a third well for 2021, the AJ-8 development well, which was originally scheduled for 2020 and deferred due to the lower oil price environment. This well will target the Abu Roash and Bahariya reservoirs in an undrained area of the Al Jahraa Field and will be drilled by the EDC-50 rig after completion of ASD-1X.
United’s Chief Executive Officer, Brian Larkin commented:
“There is considerable exploration potential in the Abu Sennan licence, and it is great to be actively drilling wells to unlock that potential. We are delighted that the ASD-1X exploration well has been spudded and look forward to updating shareholders once the well has reached the target reservoirs.
“The improving oil price environment of recent months has significantly enhanced operational cashflows and improved the economics of additional development wells so it is also very pleasing to have confirmation of the drilling of the AJ-8 development well immediately after completion of ASD-1X.”
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.
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”).
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 Egypt, UK, Italy and a high impact exploration licence in Jamaica.
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/