Update on Podere Maiar

RNS Number : 3286C

United Oil & Gas PLC

19 January 2018

 

                                                                                                                                19 January 2018

United Oil & Gas Plc

Update on Podere Maiar

United Oil & Gas Plc ("UOG", "United" or the "Company") the London Stock Exchange listed oil and gas exploration and development company, notes that Po Valley Energy Limited ("PVE" or "Po Valley"), the operator on the Podere Maiar 1 ("PM1") well on the Selva Gas Field in the Podere Gallina licence - in which United has a 20% interest - have today made an announcement relating to significant gas flows.

Significant Italian gas discovery confirmed

Strong gas flows on test have confirmed a significant commercial discovery for United Oil & Gas Plc at its Selva gas field in northern Italy.

The Company announces today that PVE have reported that the strong gas flows have resulted from successful flow testing of the recently drilled Podere Maiar 1dir exploration well on the Selva gas field within the Podere Gallina Exploration licence in northern Italy (PVE 63% Operator; United Oil & Gas Plc 20%; Prospex Oil & Gas Plc 17%).

That drill program intersected two identified gas reservoirs, C1 and C2, in the Medium-Upper Pliocene sands of the Porto Garibaldi Formation.

The thickest level C2 (net pay 25.5 m) reported a peak flow rate of 148,136 scm/day on a 3/8 inch choke and a pressure differential of 11 bar with no water production.  Pressure recovery to formation pressure occurred in 2 minutes.  The higher level C1 (net pay 15.5 m) also reported strong flow test results with a peak flow rate of 129,658 scm/day on a 3/8 inch choke with good pressure recovery (about 12 minutes).

Table 1: Flow test results C2 level 1282.5m - static well head pressure 123.0 bara

Choke	Flow rate	Flowing well head pressure
1/8 inch	17,850 scm/day	122.8 bara
2/8 inch	66,000 scm/day	120.7 bara
18/64 inch	80,700 scm/day	119.5 bara
3/8 inch	148,136 scm/day	111.9 bara

Table 2: Flow test results C1 level 1253.5m - static well head pressure 119.7 bara

Choke	Flow rate	Flowing well head pressure
1/8 inch	14,348 scm/day	119.3 bara
1/4 inch	64,475 scm/day	115.0 bara
18/64 inch	77,351 scm/day	113.7 bara
3/8 inch	129,658 scm/day	105.1 bara

The strong flow rates from two gas bearing levels 99.1% methane gas content and the well's 600m proximity to the Italian national gas grid pipeline connection, clearly make the Podere Maiar 1 dir well a commercial discovery.  As Operator, Po Valley will now prepare and submit a production concession application to the Italian Ministry, in the first half of 2018. The Ministry has been formally informed of the discovery and officials attended the successful test.

United Oil & Gas Plc, Brian Larkin:

"We are delighted to announce a commercial discovery on our Italian well. This result is a significant development milestone for our business. The flow test results exceeded our pre-drill expectations and we are now on the road to production. Po Valley will now incorporate this well-test data into the development plan and submit it as part of the application to the Italian authorities to convert a portion of the existing "Exploration Licence" into an "Exploitation Licence."

"We will continue to keep markets updated on potential deal flow along with operational portfolio developments."

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)	[phone]
Joe Heron	[e-mail]

Editor's Note:

United Oil & Gas plc (UOG) is listed on the main market of the London Stock Exchange.  UOG 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 current licences:

Country	Licence	Operator	United Holding
Italy	Podere Gallina Licence	Po Valley Energy	20%
United Kingdom	Waddock Cross Field	Egdon Oil Plc	26.25%
United Kingdom	PL090 Exploration	Egdon Oil Plc	18.95%
United Kingdom	P1918*	Corallian	10%**
United Kingdom	PEDL 330	Corallian	10%**
United Kingdom	PEDL 345	Corallian	10%**
Jamaica	Walton-Morant	Tullow Oil plc	20%

*Offshore

** Option to acquire a further 10%

 

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