Italian Operational Update

RNS Number : 3802U

United Oil & Gas PLC

24 October 2017

 

FOR IMMEDIATE RELEASE                                                                            24 October 2017

United Oil & Gas Plc

 ("UOG", "United" or the "Company")

Italian Operational Update  

United Oil & Gas Plc ("UOG", "United" or the "Company"), the London Stock Exchange listed oil and gas exploration and development company, issues the following update on their Italian licence in the Po Valley. 

United Oil & Gas, is delighted to announce that following the extension of the Italian Podere Gallina licence to 3 February 2018 as announced on 4 September 2017, the Company will soon be in a position to begin the drilling of the Podere Maiar well.  The well is expected to commence drilling week commencing 13^th November, and will take approximately 5 weeks to drill.  Well-testing is planned in the case of success, and will be undertaken once drilling operations have been completed.

Brian Larkin, CEO commented:

"We are very pleased with the execution of the Podere Gallina work programme to date, and we look forward to spudding United's first well.  This will be an important milestone in the development of the Company.  

United has a clear strategy of acquiring, developing and unlocking the value of low risk projects in Europe, while seeking high impact exploration opportunities in Africa and Latin America.  This first well is an important step in implementing that strategy."

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:

Podere Gallina Project (Italy)

On 4 May 2017, UOG and Po Valley Operations Pty Ltd ("PVO"), a company incorporated and registered in Australia, a wholly owned subsidiary of Po Valley Energy Ltd ("PVE"), entered into the Podere Gallina Farm-in Agreement ("Farm-in Agreement"), pursuant to which PVO conditionally agreed to sell to UOG, a 20 per cent. interest in the Podere Gallina Exploration Licence  held by PVE and awarded by the Ministry of Economic Development (the "Ministry") on 2 December 2008 (the "Exploration Licence"), and which includes the Podere Maiar-1 exploration well.

The principal condition of the Farm-in Agreement was that UOG raise a minimum of £3 million. Accordingly, having completed a placing at the time of re-admission on 31 July 2017, the Farm-in Agreement is now unconditional.

Pursuant to the Farm-in Agreement, UOG has a 20 per cent. working interest in the Exploration Licence on funding 40 per cent. of the cost of the Podere Maiar appraisal well that is scheduled to be drilled in Q4 2017. PVE, which was awarded the Exploration Licence in September 2008, is the licence operator and has an 80 per cent. working interest in the Exploration Licence.

Accordingly, UOG has the following interest in the Exploration Licence:
Podere Gallina licence details

Operator                     UOG Interest (%)            Status                 Licence expiry date           Licence Area

Po Valley Energy Ltd                  20%            Exploration       3 February 2018            506 km²

Podere Gallina Project Summary

				Base-case	Near-Term Activity
	Equity	CoS	Resource	Net
Asset	(%)	(%)	Type	Resources
Podere Maiar (Selva Strat)	20	N/A1	Contingent	0.57mmboe	Rig contracted for drilling in Q4 '17
East Selva	20	13	Prospective	1.16mmboe	3D seismic to de-risk prospect planned post-
					Podere Maiar well
Fondo Perino	20	34	Prospective	0.49mmboe	3D seismic to de-risk prospect planned post-
					Podere Maiar well
Cembalina	20	51	Prospective	0.11mmboe	Plans to be firmed-up post-Podere Maiar well

(2018)

¹ Minimal geological risk, as hydrocarbons are already proven

 

END

 

 

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