Letter of Intent Signed for Colter Drill

RNS Number : 0417O

United Oil & Gas PLC

15 May 2018

 

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

15^th May 2018

Letter of Intent Signed for Provision of Rig to Drill Colter Well

United Oil & Gas Plc (United or The Company), the London Stock Exchange listed oil and gas exploration and development company, is pleased to note the announcement made today by Corallian Energy Limited ("Corallian Energy"), our partner in and operator of licence P1918 (UKCS Block 98/11a), that it has entered into a Letter of Intent with UK drilling company Ensco U.K. for the provision of a jack-up rig to drill the Colter Well.  Outlined in the Letter of Intent the parties have agreed, subject to approvals and consents, headline terms for a suitable unit to conduct drilling operations in Q3/4 2018.

The Colter discovery is adjacent to the largest onshore oil field in Europe, Wytch Farm, which has produced in excess of 450 million barrels of oil.  Colter was originally drilled by offshore well 98/11-3 in 1986 which recovered oil on test from a 10.5 metres oil column within the Triassic Sherwood Sandstone, the main reservoir at Wytch Farm. More recently, merged and reprocessed 3D seismic data has indicated potential up-dip of the discovery well.  The target is in shallow water, which enables the use of an offshore jack-up rig, keeping costs to a minimum. United estimates the Company's share of drilling costs to be under £1m. 

Brian Larkin, CEO United Oil and Gas:

"We are delighted to see continuing progress on this exciting licence.  The Colter Well will be drilled up-dip of an existing discovery in an established oil region. The addition of an excellent drilling partner, Ensco UK, will further strengthen our chances of success."

"This well is consistent with United's strategy of targeting near-term, low-risk development opportunities in Europe whilst utilising the industry experience of our management team to pursue higher-risk, high-impact opportunities in Africa and South America." 

ENDS

This announcement contains inside information for the purposes of Article 7 of Regulation (EU) 596/2014.

For more information please visit the Company's website at www.uogplc.com or contact: 

United Oil & Gas Plc (Company)
Brian Larkin	[e-mail]
Optiva Securities Limited (Broker)
Christian Dennis	[phone]
Beaumont Cornish Limited (Financial Adviser)
Roland Cornish and Felicity Geidt	[phone]
Murray (PR Advisor)
Joe Heron	[phone]
	[e-mail]

Notes to Editors

United Oil and Gas

United Oil & Gas plc (UOG) is listed on the main market of the London Stock Exchange.  United was established to explore, appraise and develop low-risk assets in Europe and North Africa and to develop higher-risk, higher-impact exploration projects in Latin America and Africa.

The following table outlines the Company's interests in the following licences:

Country	Licence	Operator	United Interest
Italy	Podere Gallina Licence	Po Valley Energy Limited	20%
United Kingdom	Waddock Cross Field	Egdon Resources UK Limited	26.25%
United Kingdom	PL090 Exploration	Egdon Resources UK Limited	18.95%
United Kingdom	P1918*	Corallian Energy Limited	10%**
United Kingdom	PEDL 330	Corallian Energy Limited	10%**
United Kingdom	PEDL 345	Corallian Energy Limited	10%**
Jamaica	Walton-Morant*	Tullow Jamaica Ltd	20%

 *Offshore

** Option to acquire a further 10%

About Ensco U.K. Limited

Ensco U.K. Ltd, a subsidiary of Ensco plc, a global provider of offshore drilling services to the petroleum industry. The Ensco Group's extensive fleet of 64 offshore units is the world's largest and includes drillships, dynamically-positioned semisubmersibles, moored semisubmersibles and jack-up rigs. Ensco plc is quoted on the New York Stock Exchange and is headquartered in London, with offices around the world.

 

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