ASH - 3 Well Update

RNS Number : 0273P

United Oil & Gas PLC

15 February 2021

 

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

15 February 2021

United Oil and Gas plc

("United" or "the Company")

ASH-3 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 provide the following update on the drilling of the ASH-3 well in the Abu Sennan concession, onshore Egypt. United holds a 22% non-operating interest in Abu Sennan, which is operated by Kuwait Energy Egypt.

Highlights

· Total of 27.5m net pay interpreted over a 59m gross section in the targeted Alem El Buieb (AEB) reservoir

· Initial testing will be completed in the coming days before the well is then brought onstream through the existing ASH Field facilities

ASH-3 Well

The ASH-3 development well, which spudded on the 4^th January, reached TD of 4,087m MD (3,918m TVDSS) on 8^th February, 5 days ahead of schedule and under budget. The well, which has been drilled as a step-out development well in the ASH Field, has been logged and interpreted to have a 59m gross hydrocarbon column in the primary AEB reservoir target, 27.5m of which is estimated to be net pay.

The well will be tested and completed in the coming days and will then be brought immediately onstream through the existing ASH facilities, delivering a further uplift to production. The ED-50 rig will then move to the north of the Licence, close to the producing Al Jahraa field to commence the drilling of the ASD-1X exploration well. This well is targeting the Abu Roash reservoirs in the 4-way dip-closed Prospect D structure and, if successful, can quickly be brought into production.

The Company will make a further announcement once testing is complete.

United Chief Executive Officer, Brian Larkin commented:

"We are very encouraged with the initial results of the ASH 3 well and we are delighted that it has been delivered safely, ahead of schedule and under budget by our licence partners.  We anticipate the well will deliver a further uplift to our low cost production base, an encouraging result ahead of the spudding of our forthcoming exploration well and the remainder of our 2021 work, all of which is fully funded from operating cash flow.

"To date the ASH Field has produced close to 2 million barrels of oil, with current production rates at over 5,000 boepd, and we believe significant further potential exists within the licence."

**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. 

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 ("MAR").

Glossary:

Boepd - barrels of oil equivalent per day

MD - Measured Depth

TVDSS - Total Vertical Depth Subsea

United Oil & Gas Plc (Company)
Brian Larkin, CEO	[e-mail]
Beaumont Cornish Limited (Nominated Adviser)
Roland Cornish and Felicity Geidt	[phone]
Optiva Securities Limited (Joint Broker)
Christian Dennis	[phone]
Cenkos Securities Plc (Joint Broker)
Joe Nally (Corporate Broking) Derrick Lee and Pete Lynch	[phone] [phone]
Murray (PR Advisor)	[phone]
Joe Heron	[e-mail]
Camarco (Financial PR/IR)
Billy Clegg 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, Italy 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 https://www.uogplc.com/ 

 

END

 

 

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