TIDMUOG
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 Average gross
test oil rate
24/64" 8 hours 449 bopd
----------- ------------ --------------
32/64" 6 hours 565 bopd
----------- ------------ --------------
AR-C 48/64" 8 hours 684 bopd
----------- ------------ --------------
24/64" 4 hours 439 bopd
----------- ------------ --------------
32/64" 4 hours 556 bopd
----------- ------------ --------------
AR-E 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
Sharan Dhami, Head of IR & ESG 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
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END
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