United Oil 'disappointed' by latest drilling at Abu Sennan

The AIM-traded firm holds a 22% non-operating interest in the licence, which is operated by Kuwait Energy Egypt (KEE).

It said the ASW-1X well was drilled to a total depth of 3,640 metres, 10 days ahead of schedule and under budget.

Although the well encountered a net reservoir in the Abu Roash, Bahariya, and Alam El Bueib targets, the logs did not indicate the presence of hydrocarbons.

The board said the results from the ASW-1X would be integrated into the company’s “subsurface understanding” of the Abu Sennan licence, and the additional data used to help prioritise future drilling locations.

United said the well would now be plugged and abandoned, and the Sino Tharwa-1 rig mobilised to drill the first well of the 2023 drilling campaign.

That would be the ASH-8 development well, targeting an undrilled area of the ASH field.

The company added that details of the 2023 drilling programme would be provided with its trading statement, due in late January.

“Although the results of the ASW-1X well are disappointing, the joint venture partners are positive about the remaining prospectivity on the licence and will continue to deliver the maximum value from it,” said chief executive officer Brian Larkin.

“We are looking forward to the 2023 drilling campaign, which will initially focus on further development of the asset by the drilling of ASH-8 followed by the ASD-3 well.

“These development wells are targeting the most prolific areas of the Abu Sennan licence, to maximise production before the drilling of at least one further exploration well in Abu Sennan later in the year.”

At 1457 GMT, shares in United Oil & Gas were down 16.86% at 1.06p.

Reporting by Josh White for Sharecast.com.