REG - United Oil & Gas PLC - Commencement of Production from the ASH-8 well

United Oil & GasAnnouncement

21/03/2023 07:00

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20230321:nRSU5842Ta&default-theme=true

RNS Number : 5842T  United Oil & Gas PLC  21 March 2023

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

 

21 March 2023

United Oil and Gas plc

("United" or "the Company")

 

 Commencement of Production from the ASH-8 well

 

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 ASH-8 development well ("ASH-8") in
the Abu Sennan licence, onshore Egypt. United holds a 22% working interest in
the licence, which is operated by Kuwait Energy Egypt.

 

Summary

-       ASH-8 well commenced production on 16 March at an initial
stabilised rate of c. 2,980 bopd and 2.64 mmscf/d gross (c. 656 bopd and 0.58
mmscf/d net)

-       Production has come onstream six weeks ahead of the anticipated
schedule, at a higher rate than originally forecast resulting in group H1
production now expected to be at the upper end of the guided range of 700 -
900 bopd net

ASH-8

As previously announced, the ASH-8 development well was interpreted to have
encountered 22 metres of net oil pay in the primary Alam El Bueib ("AEB")
reservoir target, in line with pre-drill expectations. After reaching TD on
the 21 February, the well was completed and tested on a number of different
choke sizes, as summarised in the table below.

 

 Choke Size  Duration of test  Average gross flow rate
             Oil (bopd)                  Gas (mmscf/d)  Combined (boepd)
 24/64"      16.5 hours        1,737     2.2            2,177
 32/64"      6.5 hours         3,114     3.3            3,774
 64/64"      6.5 hours         6,023     8.2            7,663

 

The well has now been tied into the existing facilities and brought on stream
at an initial rate of c. 2,980 bopd and 2.64 mmscf/d gross (656 bopd and 0.58
mmscf/d net) on a 32/64" choke. The production from the well will continue to
be monitored, so that the long-term production potential can be assessed.
However, the currently stable rates coupled with the lack of water-cut and the
pressures observed in the well provide positive indicators for its longer-term
potential. With the well coming onstream nearly six weeks ahead of schedule,
and with rates above pre-drill expectations, the Company's H1 actual
production is expected to be at the upper end of the production guidance of
700-900 bopd net.

 

The ST-1 rig is now moving towards the ASD-3 location to drill the second
development well in the 2023 drilling programme, which is expected to spud in
the coming weeks.

 

Brian Larkin, CEO, commented:

"We are very happy with the results from the ASH-8 well, and it is pleasing to
see the well being brought on stream at a stabilised production rate of over
2,900 bopd some six weeks ahead of schedule. This is the fifth well in the
highly productive ASH field, which has so far produced in excess of 4 million
barrels of oil. The successful result at ASH-8 will have a positive impact on
group production levels and revenue and further highlights the long-term value
of the field.  We look forward to drilling the next development well at ASD-3
on a location that was high-graded by the JV Partners following the success of
the ASD-2 well in March 2022."

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

boepd - barrels of oil equivalent per day

choke- device to control the flow of fluids produced from wells

JV Partners- Joint Venture Partners

mmscf/d - million standard cubic feet per day

TD - Total Depth

 

 

 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                  +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  |uog@camarco.co.uk (mailto:uog@camarco.co.uk)

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)

 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  UPDPPURCWUPWGMU