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United Oil & Gas PLC (UOG)

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Tuesday 29 May, 2018

United Oil & Gas PLC

Operational Update: Progress at Podere Gallina

RNS Number : 4400P
United Oil & Gas PLC
29 May 2018
 

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

 

May 29, 2018

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

 

Operational Update: Further Progress at Podere Gallina

 

Highlights:

 

·     Operator Po Valley Energy has submitted an application for a production concession on the Podere Gallina licence

·     Planned facilities will be capable of producing at up to 150,000 cubic metres of gas per day

·     Important milestone in moving the 41m net gas pay encountered in the Podere Maiar 1 well closer to production

·     3D seismic programme proposed in late 2018 / 2019 to progress additional targets within the production concession

 

United Oil & Gas Plc, the London Stock Exchange listed oil and gas exploration and development company, is pleased to confirm that Po Valley Limited, operator of the Podere Gallina Exploration licence, has submitted the production concession application to develop the high return Selva gas field.  United holds a 20% interest in the Podere Gallina licence.

The Podere Maiar discovery was announced by United in January. The drilling results from the PM1 well delineated two gas bearing reservoirs (with a combined gross sand interval of 62m and a net pay of 41m).   The strong flow rates at the discovery, allied to the fields proximity to existing gas infrastructure

Under the first phase of the development plan submitted today, Po Valley will install a fully automated gas plant at the existing Selva/Podere Maiar 1dir well site at a cost of EUR2.4m and run a one kilometre long pipeline to connect with the nearby Italian National Grid connection. Based on dynamic reservoir studies, the field development is designed to produce in the first phase at a rate of up to 150,000 cubic metres (5.3 mmscf/day) a day from successfully tested C1 and C2 production levels in the Medium-Upper Pliocene sands of the Porto Garibaldi Formation.

In the second phase of the development (contingent on 3D seismic results), additional wells would be drilled in the field's highly prospective Selva East, Selva South Flank, and Riccardina prospects, all of which fall within the production concession application area. Following the success of the Podere Maiar 1dir Well in January this year, 3D seismic will be acquired (subject to JV approval) across these areas in the second half of 2018 or early 2019 with a view to significantly increase the size of the Selva natural gas resource.

The Selva production concession application will now be considered for preliminary award at the next Italian Ministry Hydrocarbon Commission meeting expected in July. In the interim the operator, Po Valley, will prepare EIA documentation so as to be able to commence the next stage of environmental approval pending preliminary award.

United Oil & Gas Plc CEO, Brian Larkin, said, "

"We are delighted with the excellent progress being made in relation to our first commercial discovery, Podere Maiar.  Today's announcement moves us along the path to production at this discovery.  It also gives proof of the additional prospectivity that this licence offers.  We will be working with the operator to design a programme of seismic activity for later this year and early 2019, with the goal of identifying additional drilling targets. 

"The timing of this announcement, following on from our recent success in the 30th UK Licencing Round, is further evidence of our commitment to delivering for shareholders.  We are continuing to grow and develop our asset base and we look forward to further positive announcements in the weeks and months ahead."

 

**ENDS**

 

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

[email protected]

 

 

Optiva Securities Limited (Broker)

 

Christian Dennis

+44 (0) 20 3137 1902

 

 

Beaumont Cornish Limited (Financial Adviser)

 

Roland Cornish and Felicity Geidt

+44 (0) 20 7628 3396

 

 

Murray (PR Advisor)

 +353 (0) 87 6909735

Joe Heron

[email protected]

 

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 North Africa and to develop higher risk, higher impact exploration projects in Latin America and Africa.

 

The following table outlines the Company's licence interests:

Country

Licence

Operator

United Interest

Italy

Podere Gallina Licence

Po Valley Energy Limited

20%

United Kingdom

Waddock Cross Field

Egdon Resources UK Limited

26.25%

United Kingdom

PL090 Exploration

Egdon Resources UK Limited

18.95%

United Kingdom

P1918

Corallian Energy Limited

10%**

United Kingdom

PEDL 330

Corallian Energy Limited

10%**

United Kingdom

PEDL 345

Corallian Energy Limited

10%**

Jamaica

Walton-Morant

Tullow Jamaica Ltd

20%

 

** Option to acquire a further 10%

 

 

 


 


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