United Oil and Gas provides update on Egyptian drilling campaign

United Oil & Gas (LON:UOGU) has today provided an update on the drilling of the Al Jahraa-13 development well in the Abu Sennan licence onshore Egypt. United holds a 22% working interest in the licence, which is operated by Kuwait Energy Egypt.

The AIM-listed company said the Al Jahraa-13 development well encountered 17.m of net pay in the oil-bearing Upper and Lower Bahariya reservoir targets, in line with the range of pre-drill expectations.

The well safely reached Total Depth of 3,840m several days ahead of schedule and under budget.

The well will now be tested and completed in the coming days and be brought immediately onstream through the existing Al Jahraa facilities, adding additional production and revenue for the company.

“We have had outstanding results with our drilling campaign in 2021 with five out of five successful wells drilled at Abu Sennan this year,” United Oil and Gas Chief Executive Officer Brian Larkin said in a statement. “All of the wells have been brought into production quickly, generating cash flow for the Company.”

The Al Jahraa-13 was the final well in the company’s Abu Sennan 2021 drilling programme before the start of the 2022 drilling programme.

“The 2021 drilling campaign has further de-risked the exploration potential at Abu Sennan and the development wells have provided further valuable data for future exploration drill targets two of which are included in the 2022 programme; ASF-1X and AST-1X,” Larkin added.

At 08:15GMT, shares in United Oil and Gas were trading higher by 15.5% at 2.60 pence per share.