United Oil gets approval for lease of Abu Sennan discovery
By Josh White
Date: Wednesday 02 Jun 2021
(Sharecast News) - United Oil & Gas updated the market on the Abu Sennan Licence in Egypt on Wednesday, in which it holds a 22% non-operating interest, reporting that the Minister of Petroleum had approved the award of a development lease covering the ASD-1X discovery.
The AIM-traded firm also confirmed the start of production from the ASD-1X well, with initial gross rates of 1,295 barrels of oil per day, with 285 barrels per day net to United's working interest.
It said the start of production was achieved less than two months from the initial discovery in April.
The company also reported the successful workover at the ASH-1ST2 well, adding more than 1,000 barrels of oil per day gross, with 220 barrels net to United, to production from the ASH field.
"The speed at which the joint venture is developing Abu Sennan is demonstrative of the excitement we share for the long-term potential of the licence, which continues to deliver for the company," said chief executive officer Brian Larkin.
"Today's announcement is yet more positive news, with the approval of the development lease at ASD-1X and the start of production from that well.
"We would also expect this result to add to the proven reserves on the licence."
Larkin said that in tandem with exploration success in Abu Sennan, the "encouraging result" from the ASH-1ST2 workover would provide a further boost to production, and would also help increase understanding of the ASH field.
"With the EDC-50 rig still drilling the Al Jahraa-8 development well, we look forward to providing further updates on the continuing 2021 Abu Sennan drilling campaign in due course."
At 1447 BST, shares in United Oil & Gas were up 1.64% at 4.27p.
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