Significant Upgrade to Italian Resources

RNS Number : 1724X

United Oil & Gas PLC

26 April 2019

 

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

26 April 2019

United Oil & Gas PLC ("United" or the "Company") 

Significant Upgrade to United's Italian Resources

·    CPR commissioned by operator Po Valley has added significant resources to the Podere Gallina Licence, onshore Italy

·    Includes 14.1Bcf of additional gross Contingent Resources and a 74% increase in the unrisked mid-case gross Prospective Resources to 91.5 Bcf

·    CPR confirms the previously reported gross 2P Reserves of 13.3 Bcf assigned to the Podere Maiar-1 well (Selva Field)

·    First production from the Selva Field remains on schedule for 2020, targeting rates of 150,000 cubic metres per day

United Oil & Gas Plc, the AIM-traded oil and gas exploration and development company, is pleased to announce a significant upgrade to the reported resources for the Podere Gallina Licence, onshore Italy.   

Further to the RNS released on February 7 2019, a CPR covering all of the Podere Gallina Licence, including the Selva Malvezzi Production Concession has now been commissioned by Po Valley Energy Limited through consultants CGG. In addition to the gross 2P Reserves of 13.3Bcf that were previously reported, a further 14.1Bcf of gross 2C Contingent Resources, and 91.5Bcf of unrisked gross Prospective Resources have now been included in the resource inventory. United Oil & Gas holds a 20% economic interest in the Licence.

	Po Valley Energy Report - Podere Gallina Licence Summary
Reserves	Gross	Net Attributable	Gross	Net Attributable	Gross	Net Attributable
	1P	United 1P	2P	United 2P	3P	United 3P
	4.1	0.8	13.3	2.7	29.8	6.0
Contingent Resources	1C	United 1C	2C	United 2C	3C	United 3C
	5.6	1.1	14.1	2.8	30.7	6.1
Prospective Resources	Low	United Low	Best	United Best	High	United High
	54.3	10.9	91.5	18.3	194.8	39.0

Notes: 1.              United's net attributable figures are based on 20% economic interest

             2.               Operator is Po Valley Operations Pty Limited

             3.               Figures stated in accordance with SPE PRMS

Brian Larkin CEO, United Oil and Gas PLC:  

"This latest CPR provides further confirmation of the significant upside on the Podere Gallina Licence.  This report goes beyond the scope of the recent CPR published by United Oil and Gas and in doing so, greatly enhances our position and our resource calculations.

"The upside identified in this report adds to that previously reported for the recently drilled 13.3bcf Selva Field. This is a low-cost, high-return project, which is continuing to be progressed towards production.  When Selva begins production in 2020 at a targeted rate of 150,000 cubic metres of gas per day, it will deliver significant cash flow to United, further fuelling our potential for growth, not only on the Selva Licence including the neighbouring East Selva, Riccardina, and Fondo Perino prospects, but also across our portfolio of low risk European assets with additional near-term production opportunities and frontier exploration in South America and Africa offering transformational upside."

The recent United Oil and Gas RNS regarding the CPR for the Selva gas field can be sourced at this link

https://polaris.brighterir.com/public/united_oil_and_gas/news/rns/story/wvqk2zx

Glossary

'1P' means Proved Reserves

'2P' means Proved plus Probable Reserves

'3P' means Proved plus Probable plus Possible Reserves

Bcf means Billion Cubic Feet

'2C' or 'Contingent resources' means quantities of petroleum estimated as of a given date, to be potentially recoverable from known accumulations by application of development projects, but which are not currently considered commercially recoverable due to one or more contingencies

'Prospective Resources' means those quantities of petroleum estimated, as of a given date, to be potentially recoverable from undiscovered accumulations by application of future development projects. Prospective Resources have both an associated chance of discovery and a chance of development. They are further subdivided in accordance with the level of certainty associated with recoverable estimates assuming their discovery and development and may be sub-classified based on project maturity.

'Proved Reserves' means those quantities of petroleum which, by analysis of geological and engineering data, can be estimated with reasonable certainty to be commercially recoverable, from a given date forward, from known reservoirs and under current economic conditions, operating methods, and government regulation - Proved reserves can be categorized as developed or undeveloped

'Probable reserves' are those unproved reserves which analysis of geological and engineering data suggests are more likely than not to be recoverable. In this context, when probabilistic methods are used, there should be at least a 50% probability that the quantities actually recovered will equal or exceed the sum of estimated proved plus probable reserves

'Possible Reserves' are those unproved reserves which analysis of geological and engineering data suggests are less likely to be recoverable than probable reserves. In this context, when probabilistic methods are used, there should be at least a 10% probability that the quantities actually recovered will equal or exceed the sum of estimated proved plus probable plus possible reserves

Reserve Status Categories

'PRMS' means the 2018 Petroleum Resource Management System

'SPE' means Society of Petroleum Engineers

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. 

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 (Nominated Adviser)
Roland Cornish and Felicity Geidt	[phone]
Murray (PR Advisor)	[phone]
Joe Heron	[e-mail]
St Brides Partners (Financial PR/IR)
Frank Buhagiar and Juliet Earl	[phone]

Notes to Editors

United Oil & Gas plc (UOG) is an AIM-traded company. United was established to explore, appraise and develop low risk assets in Europe and to develop higher risk, higher impact exploration projects in the Caribbean, Latin America and Africa.

The following table outlines the Company's licence interests:

Country	Licence	Operator	United Interest
Italy	Podere Gallina Licence	Po Valley Energy Limited	20%
UK	Waddock Cross Field	Egdon Resources UK Limited	26.25%
UK	PL090 Exploration	Egdon Resources UK Limited	18.95%
UK	P1918	Corallian Energy Limited	10%
UK	PEDL 330	Corallian Energy Limited	10%
UK	PEDL 345	Corallian Energy Limited	10%
UK	P2366	United Oil & Gas Plc	95%
Jamaica	Walton-Morant	Tullow Jamaica Ltd	20%

 

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