AJ-14 Development Well Update

RNS Number : 8531U

United Oil & Gas PLC

04 August 2022

 

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

4 August 2022

United Oil and Gas Plc

("United" "the Group" or the "Company")

AJ-14 Development Well Update

United Oil & Gas Plc (AIM: "UOG"), the growing oil and gas company with a portfolio of production, development, exploration and appraisal assets is pleased to announce an update on the drilling of the Al Jahraa-14 development well ("AJ-14") in the Abu Sennan licence, onshore Egypt. United holds a 22% working interest in the licence, which is operated by Kuwait Energy Egypt.

Summary

· AJ-14 encountered seven metres of net oil pay in the Primary Abu Roash C ("ARC") reservoir

· Planned testing programme to include both Primary (ARC) and Secondary Abu Roash G ("ARG") targets

· AJ-14 is the seventh successful development well at Abu Sennan since United acquired its interest in the licence

The AJ-14 development well was primarily drilled to intersect the ARC reservoir, targeting reserves from an undrained area of the Al Jahraa Field identified from reservoir and simulation modelling work. The well safely reached total depth of 3619 metres ahead of schedule and under budget. A full logging suite was acquired through the ARC and 7 metres of good quality net oil pay has been interpreted in the reservoir, in line with the higher end of the pre-drill estimates.

The secondary ARG target was encountered 13 metres updip of the Al Jahraa-12 well, which was interpreted to have intersected an oil-water contact in this reservoir. Due to technical difficulties whilst running the logging tools a full logging suite was not acquired over the ARG interval in the AJ-14 well. However, there was sufficient encouragement from the Logging While Drilling tools to indicate potentially hydrocarbon-bearing reservoir, and to include the ARG in the testing programme.

Both the primary and secondary targets of the well are now planned to be tested and completed. If the testing is successful from either target, the well will be brought immediately onstream through the existing facilities, adding additional production and revenue for United. United will update the market on these results in due course.

Continuing Egypt drilling programme

The Sino Tharwa-1 rig used to drill AJ-14 will now be used to drill the ASH-4 development well, which is targeting 2.2 million barrels gross mean recoverable reserves in an undrilled compartment of the ASH Field. The rig move is expected to be performed over the next few weeks, with the well to spud shortly thereafter.

Brian Larkin, CEO commented:

"This is the seventh consecutive successful development well on the Abu Sennan licence since 2019. With oil prices remaining high, and the speed with which additional production can be quickly brought on stream through existing facilities, Abu Sennan's strong cash generation and extensive reserve and prospect inventory provides a solid foundation on which to build United's strategy. We are very excited about the remaining wells in the 2022 drilling programme, with the ASH-4 development well targeting 2.2 million barrels gross before the drilling of the final well in our 2022 programme, the high impact exploration well ASF-1X which is targeting over 8 million barrels gross."

ENDS

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).

Enquiries
United Oil & Gas Plc (Company)
Brian Larkin, CEO		[e-mail]
Sharan Dhami, Head of IR & ESG		[e-mail]
Beaumont Cornish Limited (Nominated Adviser)
Roland Cornish | Felicity Geidt		[phone]
Tennyson Securities (Joint Broker)
Peter Krens		[phone]
Optiva Securities Limited (Joint Broker)
Christian Dennis		[phone]
Camarco (Financial PR)
Georgia Edmonds  |  James Crothers  |		[phone]  | [e-mail]

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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