CPRs for Crown Discovery and Waddock Cross Field

RNS Number : 7487O

United Oil & Gas PLC

01 February 2019

 

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

1 February 2019

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

CPRs for Crown Oil Discovery and Waddock Cross Field

Highlights

·    Crown Oil Discovery, North Sea - 6.35 MMstb of gross unrisked 2C oil contingent resources assigned to the Crown Discovery in the North Sea by ERCE

·    Waddock Cross Field, Wessex Basin - Updated gross unrisked 2C oil contingent resources of 1.55 MMstb assigned to the Waddock Cross Field in the Wessex basin by ERCE

·    Combined net unrisked 2C oil contingent resources from the two assets of 6.45 MMstb to United

·    Provides support to Company estimates of existing risked portfolio value of close to US$80 million

·    Further CPRs for the Colibri prospect offshore Jamaica and onshore Italy licences due shortly

United Oil & Gas Plc, the London Stock Exchange listed oil and gas exploration and development company, is pleased to announce the results of an independent Competent Person's Report ('CPR') prepared by ERC Equipoise Ltd ('ERCE') for the Crown Oil Discovery on licence P2366 in the Central North Sea and the Waddock Cross Field on Licence PL090 in the Wessex Basin.

The Crown CPR, which is the first CPR commissioned by United on the Crown Discovery, estimates gross unrisked 2C oil contingent resources of 6.35 MMstb for this asset.

The updated CPR on the Waddock Cross Field is based on recently reprocessed seismic, and has increased the gross unrisked 2C oil contingent resources from 1.23 MMstb to 1.55 MMstb.

The above CPRs form part of a number of reports that have been commissioned by the Company. CPRs covering the large undrilled Colibri prospect on the Walton-Morant Licence offshore Jamaica and the Selva Gas Field on the Podere Gallina licence onshore Italy are currently being finalised.  The CPR results for the Crown and Waddock Cross licences are outlined in the table below:

	Gross Unrisked Oil Recoverable Contingent Resources (MMstb)			Net Unrisked Oil Recoverable Contingent Resources (MMstb)
	1C	2C	3C	1C	2C	3C
Crown (95%)	2.91	6.35	11.48	2.76	6.04	10.9
Waddock Cross (26.25%)	0.46	1.55	5.30	0.12	0.41	1.39

1)     "Gross Contingent Resources" are 100% of the volumes estimated to be recoverable from the field without any economic cut-off being applied.

2)     "Net Contingent Resources" are UOG's working interest fraction of the gross Contingent Resources

3)     Contingent Resources are estimates of volumes that might be recovered from the field under as yet undefined development scheme(s). It is not certain that the field will be developed or that the volumes reported as Contingent Resources will be recovered.

4)     The volumes reported here are unrisked in that they have not been multiplied by a chance of development.

Crown Discovery

This is the first CPR for the Crown Discovery.  A farm out process to seek other industry partners to move the Crown Discovery forward is already underway, and has seen considerable interest within the industry. These new CPR numbers, which in the Company's view are based on a conservative assessment of recovery of the in-place oil, will be invaluable in the farm-out process as they provide necessary data to give greater certainty to potential investors.

Waddock Cross Field

The Waddock Cross CPR updates previous independent estimates and is based on reprocessed and improved data.  Both the oil in - place and recoverable resources estimates have increased.  This CPR, along with other analysis already completed, will guide the Company and the operator in developing a drilling plan for the licence, with a well targeted later this year. 

United Oil & Gas PLC CEO, Brian Larkin, said: 

"Audited gross 2C oil contingent resources of nearly 8 MMstb, with over 6.4 MMstb net to United, for just two of our UK assets represents an excellent outcome.   Updated volumetrics are due shortly for the large undrilled Colibri prospect on the Tullow Oil-operated Walton-Morant licence, offshore Jamaica and also for the development stage Selva Gas Field, onshore Italy and I look forward to sharing the results of these in due course. 

"Since our inception, United has procured a portfolio of exceptional assets, normally beyond the scope of a company of this size.  While we will continue to build our portfolio, adding licences where we see opportunity, 2019 will see a greater emphasis on unlocking the value of our asset base.  Independent verification, through CPRs on each asset, will form an important part of this process.  There will be an extensive operations programme, beginning imminently with the Colter drill and including further activity in Italy, moving to production in 2020.  We will also seek to unlock value through farm downs in Jamaica and in our Crown discovery, the commerciality of which is supported by the CPR estimates reported here.   With Company estimates of close to US$80m NPV of assets already in place, we look forward to growing awareness of the considerable strength of the United business."

**ENDS**

ERC has given its consent to the reference to its CPR in this announcement. ERCE confirms it has reviewed this announcement and confirms that the estimates of Contingent Resources have been correctly extracted from the CPR. The CPR has been signed by Simon McDonald who has over 40 years of relevant experience in the oil industry.

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]
St Brides Partners (Financial PR/IR)
Frank Buhagiar and Juliet Earl	[phone]

Notes to Editors

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 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	Next Stage of Development
Italy	Podere Gallina Licence	Po Valley Energy Limited	20%	CPR nearing completion Infrastructure build 2019 Production in 2020 Further seismic to identify other opportunities in licence 2019
UK	Waddock Cross Field	Egdon Resources UK Limited	26.25%	Development drilling targeted in 2019
UK	PL090 Exploration	Egdon Resources UK Limited	18.95%	Technical work to de-risk exploration targets continuing
UK	P1918	Corallian Energy Limited	10%	Colter Drill commencing near term
UK	PEDL 330	Corallian Energy Limited	10%	Technical work to de-risk exploration targets continuing
UK	PEDL 345	Corallian Energy Limited	10%	Technical work to de-risk exploration targets continuing
UK	P2366	United Oil & Gas Plc	95%	CPR Complete Seismic reprocessing underway ahead of likely Farm Down Process
Jamaica	Walton-Morant	Tullow Jamaica Ltd	20%	CPR nearing completion Interpretation of Seismic ongoing ahead of Farm Down Process

 

END

 

 

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