United Oil makes production, development progress

United Oil reported average first quarter production of 1,567 barrels of oil equivalent per day in an update on Tuesday.

The AIM-traded firm said that consisted of 1,267 barrels of oil per day, and 300 barrel equivalents of gas net to United.

It was in line with its first half guidance of between 1,500 and 1,650 barrels of oil equivalent per day.

Operationally, the company confirmed the first well in its 2022 drilling campaign, the ASD-2 development well, started production at the end of March.

It said the ASV-1X exploration well, meanwhile, had started drilling, being the second well of the five-well 2022 drilling campaign.

All of United's production for the period was from United's 22% non-operating interest in the Abu Sennan licence, Egypt, which is operated by Kuwait Energy Egypt.

“The ASV-1X exploration well commenced drilling on the 14 April targeting mean recoverable resources estimated by United at around 2.6 million barrels gross,” the United Oil board said in its statement.

“The primary targets are sandstone Abu Roash ‘C’ (ARC) reservoirs, similar to those currently in production at the Al Jahraa field.

“The target for this well is in a fault-bounded structure in the east of the licence.”

United Oil said it was the largest undrilled ARC structure on the Abu Sennan licence.

“The ARC is currently in production from a number of fields - Al Jahraa, ASZ, ASX, ASD, El Salmiya - along a proven trend in the north of the licence area.

“Success in this reservoir at ASV-1X would extend the play to the south and east, potentially de-risking additional prospects in this area for future drilling targets.

“The well will also penetrate the Kharita reservoir as a stacked secondary target.”

United said the well was expected to be drilled and completed in about two months.

The company said it would release its results for the full year ended 31 December on 26 April.

At 1201 BST, shares in United Oil & Gas were up 0.08% at 2.55p.