Commencement of Production from the ASH-8 well

RNS Number : 5842T

United Oil & Gas PLC

21 March 2023

 

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

21 March 2023

United Oil and Gas plc

("United" or "the Company")

  Commencement of Production from the ASH-8 well

United Oil & Gas PLC (AIM: "UOG"), the full-cycle oil and gas company with a portfolio of production, development, exploration and appraisal assets is pleased to announce an update on the ASH-8 development well ("ASH-8") in the Abu Sennan licence, onshore Egypt. United holds a 22% working interest in the licence, which is operated by Kuwait Energy Egypt.

Summary

-  ASH-8 well commenced production on 16 March at an initial stabilised rate of c. 2,980 bopd and 2.64 mmscf/d gross (c. 656 bopd and 0.58 mmscf/d net)

-  Production has come onstream six weeks ahead of the anticipated schedule, at a higher rate than originally forecast resulting in group H1 production now expected to be at the upper end of the guided range of 700 - 900 bopd net

ASH-8

As previously announced, the ASH-8 development well was interpreted to have encountered 22 metres of net oil pay in the primary Alam El Bueib ("AEB") reservoir target, in line with pre-drill expectations. After reaching TD on the 21 February, the well was completed and tested on a number of different choke sizes, as summarised in the table below.

Choke Size	Duration of test	Average gross flow rate
		Oil (bopd)	Gas (mmscf/d)	Combined (boepd)
24/64"	16.5 hours	1,737	2.2	2,177
32/64"	6.5 hours	3,114	3.3	3,774
64/64"	6.5 hours	6,023	8.2	7,663

The well has now been tied into the existing facilities and brought on stream at an initial rate of c. 2,980 bopd and 2.64 mmscf/d gross (656 bopd and 0.58 mmscf/d net) on a 32/64" choke. The production from the well will continue to be monitored, so that the long-term production potential can be assessed. However, the currently stable rates coupled with the lack of water-cut and the pressures observed in the well provide positive indicators for its longer-term potential. With the well coming onstream nearly six weeks ahead of schedule, and with rates above pre-drill expectations, the Company's H1 actual production is expected to be at the upper end of the production guidance of 700-900 bopd net.

The ST-1 rig is now moving towards the ASD-3 location to drill the second development well in the 2023 drilling programme, which is expected to spud in the coming weeks.

Brian Larkin, CEO, commented:

"We are very happy with the results from the ASH-8 well, and it is pleasing to see the well being brought on stream at a stabilised production rate of over 2,900 bopd some six weeks ahead of schedule. This is the fifth well in the highly productive ASH field, which has so far produced in excess of 4 million barrels of oil. The successful result at ASH-8 will have a positive impact on group production levels and revenue and further highlights the long-term value of the field.  We look forward to drilling the next development well at ASD-3 on a location that was high-graded by the JV Partners following the success of the ASD-2 well in March 2022."

END

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).

Glossary:

bopd - barrels of oil per day

boepd - barrels of oil equivalent per day

choke- device to control the flow of fluids produced from wells

JV Partners- Joint Venture Partners

mmscf/d - million standard cubic feet per day

TD - Total Depth

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 | Emily Hall |Sam Morris		[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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