United Oil & Gas PLC Egyptian update - ASD S-1X well test update (2836Y)
January 02 2024 - 1:00AM
UK Regulatory
TIDMUOG
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").
Summ ary
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
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
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END
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