REG - United Oil & Gas PLC - Jamaica and Egypt Update

United Oil & GasAnnouncement

09/11/2023 07:15

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RNS Number : 8654S  United Oil & Gas PLC  09 November 2023

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

 

9 November 2023

United Oil & Gas plc

("United" or "the Company")

Jamaica and Egypt Update

 

United Oil & Gas Plc (AIM: "UOG"), the full-cycle oil and gas company
with a portfolio of production, development, exploration and appraisal assets,
issues the following update in relation to our Jamaican and Egyptian assets.
 

 

Jamaica Update

 

The Company is currently engaged in discussions with a preferred potential
partner that has been identified through the farmout process, to participate
alongside United in the Walton Morant Licence in Jamaica. Furthermore, the
Company is engaging with the Jamaican authorities to secure an extension to
the current licence period which expires at the end of January 2024, so as to
provide sufficient time to progress additional technical work on the block to
support the drilling of an exploration well. Additional updates on both the
farmout process and licence extension will be provided in due course.

 

Egypt Update

 

The Group's working interest production averaged 1024 boepd (946 bopd oil and
78 boepd gas) for the year to 5 November 2023, which is in line with full-year
2023 production guidance of between 930 and 1,030 boepd, which remains
unchanged. The full-year guidance includes production from the current wells
and contributions from workover activity currently being undertaken on the
fields.

Kuwait Energy Egypt, ("Kec") as the operator of the Abu Sennan licence, has
notified the Joint Venture partners that drilling of the ASD S-1X well is
expected to commence over the coming days, using the ECDC-6 rig. This
exploration well is the final well of the 2023 drilling campaign and is
targeting an un-risked STOIIP estimated by United at c. 10 mmbbls gross across
multiple reservoirs intervals, including the primary Abu Roash-C and Abu
Roash-E intervals. The ASD S Prospect has been de-risked by the ASD Field,
located ca. 2km to the north, which currently produces oil from the same
primary reservoirs that are targeted in the well. The well is expected to take
ca. 40 days to drill and log, and if positive indicators for the presence of
moveable hydrocarbons are seen, the well will be completed and tested.

As previously announced, the macroeconomic issues in the Egyptian economy have
resulted in reduced USD liquidity and have impacted the Company's ability to
repatriate funds from Egypt. This situation has further deteriorated over the
last month with the onset of renewed conflict in the region which has
exacerbated challenges to repatriate funds. Whilst EGPC has continued to make
regular payments to the Company against the receivable balance, including
Egyptian pound payments equivalent to $1.8m since the 31 October, no USD
payments have been received since August 2023.

 

United Chief Executive Officer, Brian Larkin commented:

"We are encouraged by the continued progress in relation to the farmout
process in Jamaica, as we look to unlock the material value contained in this
block and deliver value to our stakeholders, including the people of Jamaica.
We are entering a critical stage in the farm-out process and will provide an
update to the market as this progresses.

 

"In relation to our position in Egypt, we believe our assets there hold
substantial value including the potential value from the upcoming exploration
well, but the current economic conditions in Egypt present challenges. We will
continue to work with all our local Egyptian stakeholders including EGPC and
Kec to maximise value for our shareholders from these assets."

 

END

 

 

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

USD - US Dollar

MMBBL - million barrels of oil

EGPC - Egyptian National Oil Company

 

 

 

 

 Enquiries
 United Oil & Gas Plc (Company)
 Brian Larkin, CEO                                       brian.larkin@uogplc.com (mailto:brian.larkin@uogplc.com)
 Peter Dunne, CFO                                        Peter.dunne@uogplc.com (mailto:Peter.dunne@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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