REG - United Oil & Gas PLC - Egyptian update - ASD S-1X well test update

United Oil & GasAnnouncement

02/01/2024 07:00

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RNS Number : 2836Y  United Oil & Gas PLC  02 January 2024

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

 

2 January 2024

United Oil and Gas plc

("United" or "the Company")

 

Egyptian update - ASD S-1X well test update

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 ASD S-1X exploration well ("ASD S-1X")
on the ASD South prospect in the Abu Sennan licence, onshore Egypt. United
holds a 22% working interest in the licence, which is operated by Kuwait
Energy Egypt ("KEE").

Summary

As communicated on 18 December 2023, the ASD S-1X exploration well commenced
drilling on 11 November and reached a total depth of 3450 metres on 12
December, ahead of schedule and under budget.

 

Petrophysical analysis of logs indicated the presence of a total of 9.5 metres
of net pay across the prospective section of the well, which included 6 metres
of net pay within the primary Abu Roash C (AR-C) reservoir.

 

The well has now been completed as a single completion in the AR-C reservoir
and successfully tested oil on four choke sizes as follows:

 

 Reservoir  Choke Size  Duration of test  Average gross oil rate
 AR-C       24/64       6 hours           1,134 bopd*
            32/64       6 hours           1,356 bopd*
            40/64       6 hours           1,629 bopd*
            64/64       6 hours           2,173 bopd*

 

These preliminary test flow rates for the AR-C reservoir are in line with
pre-drill expectations.

 

Based on these test results, notice of a commercial discovery and an
application for a development lease at ASD South will be soon submitted to
Egypt General Petroleum Corporation by the operator, KEE. Production is
expected to commence shortly after approvals are granted and facilities are
put in place.

 

United Chief Executive Officer, Brian Larkin commented:

 

"We are pleased with the successful drilling of the ASD S-1X exploration well
and these promising initial well test results. Whilst the initial flow test
rates are very encouraging, we await well pressure data from further,
long-term testing before we can determine the expected longer-term flow rates
from this well and we will provide a further update in due course. This
discovery opens a new area of the licence and the operator will now submit a
notice of commercial discovery and an application for a development lease at
ASD South.  New production facilities will need to be built before the well
enters production.

 

Despite this success, it's important to acknowledge the challenging
macroeconomic conditions in Egypt and the persistent difficulty the Company
faces in repatriating funds from the country. We remain committed to
collaborating with our local Egyptian stakeholders, EGPC, and the operator KEE
to navigate and address these challenges.

 

END

 

Paul Ryan, who has over 18 years of relevant experience in the oil and gas
industry, has reviewed and approved the information contained in this
announcement.  Paul Ryan 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 Geoscience Energy Society of Great Britain (GESGB) and
the Society of Petroleum Engineers (SPE).

 

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).

 

*bopd = barrels of oil per day

 

 Enquiries

 United Oil & Gas Plc (Company)
 Brian Larkin, CEO                                         brian.larkin@uogplc.com (mailto:brian.larkin@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)
 Andrew Turner | 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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