REG - United Oil & Gas PLC - ASD-3 Well-Test Results

United Oil & GasAnnouncement

01/06/2023 07:00

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RNS Number : 2450B  United Oil & Gas PLC  01 June 2023

United Oil & Gas PLC / Index: AIM / Epic: UOG / Sector: Oil & Gas

 

1 June 2023

United Oil & Gas plc

("United" or "the Company")

 

ASD-3 Well-Test Results

 

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 an update on the testing of the ASD-3
development well ("ASD-3") in the Abu Sennan licence, onshore Egypt. United
holds a 22% non-operating interest in the Abu Sennan licence, which is
operated by Kuwait Energy Egypt.

 

Summary

-       12.5 metres of net oil pay interpreted across the primary Abu
Roash reservoir targets

-       730 bopd gross achieved on test from the Abu Roash E reservoir
("AR-E")

-       684 bopd gross achieved on test from the Abu Roash C reservoir
("AR-C")

-       This result has positive implications for the in-place volumes
and future potential of the ASD Field

 

ASD-3 Well Results

The ASD-3 development well, reached total depth of 3,683 metres on 8 May, in
line with the schedule and under budget. This well was drilled approx.1.2
kilometres to the north-west of the successful ASD-2 well which was drilled
in March 2022.

The well has now been logged and is interpreted to have encountered 3 metres
of net pay in the Abu Roash C reservoir ("AR-C") and 9.5 metres of net pay in
the Abu Roash E ("AR-E"), in line with pre-drill expectations.

The well has been completed, and has been tested from both the AR-C and AR-E
at a number of different choke sizes, as summarised in the table below.

 

 Reservoir  Choke Size  Duration of test  Average gross oil rate
            24/64"      8 hours           449 bopd

 AR-C
            32/64"      6 hours           565 bopd
            48/64"      8 hours           684 bopd
            24/64"      4 hours           439 bopd

 AR-E
            32/64"      4 hours           556 bopd
            48/64"      4 hours           730 bopd

 

The flow rates achieved during testing are in line with pre-drill
expectations. The well has been completed with a single selective completion
allowing production to first commence from one reservoir and then, once
depletion has occurred, to be recompleted to produce from the other. A
decision on which reservoir to initially bring onstream will be made in the
coming days, after gauges have been recovered from the well, however United
expect the well to come on production with an initial gross rate of between
500 and 600 bopd.

 

In addition to immediately adding several hundred barrels of oil per day to
production, the ASD-3 well has also proven up the connectivity of the AR-E
reservoir across the ASD Field which has positive implications for the
in-place oil volumes in the AR-E reservoir and ultimate potential recovery
from the field. The outcome from the well is consistent with the performance
we have seen to date from the ASD-2 well, which came onstream in March 2022,
and which has so far produced over 400,000 barrels of oil. This result also
supports the JV view that there is long-term production potential in both the
AR-C and AR-E reservoirs of the ASD field and there will now be a focus on
evaluating future drilling options with the JV partners to ensure that we
maximise the recovery from the field.

 

Drilling plans for the remainder of 2023 will be announced following the
completion of the evaluation of the H1 drilling activity and following
agreement with the JV partners.

 

United Chief Executive Officer, Brian Larkin commented:

"ASD-3 is the second successful well in our 2023 drilling programme,
delivering additional production and revenue to United as the well is brought
into production through existing facilities. Discussions are underway with our
JV partners on plans to maximise the economic return from the potentially
large in-place volume on ASD that this result has indicated.  Alongside this
our workover programme continues on the licence, aiming to deliver optimum
production from all of our existing wells. We will update the market on our
future Abu Sennan drilling plans once the JV partners have fully evaluated the
drilling results from the first two wells drilled this year."

 

END

 

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:

Bopd - barrels of oil per day

JV - Joint Venture partners

 

 

 

 Enquiries
 United Oil & Gas Plc (Company)
 Brian Larkin, CEO                                       brian.larkin@uogplc.com (mailto:brian.larkin@uogplc.com)
 Sharan Dhami, Head of IR & ESG                          sharan.dhami@uogplc.com (mailto:sharan.dhami@uogplc.com)

 Beaumont Cornish Limited (Nominated Adviser)
 Roland Cornish | Felicity Geidt  | Asia Szusciak        +44 (0) 20 7628 3396

 Tennyson Securities (Joint Broker)
 Peter Krens                                             +44 (0) 020 7186 9030

 Optiva Securities Limited (Joint Broker)
 Christian Dennis                                        +44 (0) 20 3137 1902

 Camarco (Financial PR)
 Georgia Edmonds | Emily Hall |Sam Morris                +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, development, appraisal and exploration
assets across Egypt, UK 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 www.uogplc.com (http://www.uogplc.com)

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