United Oil announces spudding of latest well at Abu Sennan

The AIM-traded firm said the well would target stacked upper and lower Bahariya reservoir targets, would take around 65 days to drill and complete, and was fully funded from operational cash flow.

It said AJ-13 would be capable of being rapidly brought into production, generating revenue.

The AJ-13 well would be the fifth and final well in the Abu Sennan 2021 drilling programme before the 2022 programme begins, which was planned to consist of five exploration and development wells.

United holds a 22% working interest in the licence, which is operated by Kuwait Energy Egypt.

“Following the success of Al Jahraa-8, we are delighted to now be drilling the Al Jahraa-13 well, which can add immediate cash flow to the company,” said United chief executive officer Brian Larkin.

“There is extensive potential in the Abu Sennan licence as demonstrated by the drilling success so far and the joint venture partners are pleased to once again be testing this.

“In this high oil price environment, we look forward to updating shareholders on operations and will update the market in due course on the progress of the well.”

At 1520 GMT, shares in United Oil & Gas were up 1.06% at 2.53p.