United Oil updates market on testing at Abu Sennan

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

It said preliminary test results from ASH-4 indicated a flow rate of 2,101 barrels of oil and three million standard cubic feet of gas per day from the Alam El Bueib (AEB) reservoir.

That equated to 2,700 gross barrels of oil equivalent per day, and 594 net barrels to United.

On a reduced choke, which was expected to be more representative of the producing flow rates, the well flowed at 1,325 barrels of oil and 1.8 million standard cubic feet of gas per day.

The company said ASH-4 was expected to be tied into the existing facilities and brought on stream in the coming days, with the ST-1 rig now set to move to the ASW-1X exploration well location, to start drilling the fifth well in the 2022 programme.

United said the stimulation programme was meanwhile expected to be completed on the AJ-14 well over the coming weeks.

“We are very pleased with the news of the ASH-4 initial well test result - it is expected that the well will be brought onstream in the coming days and will immediately contribute production and revenue for the company,” said chief executive officer Brian Larkin.

“The ASH field has proved to be a prolific area of the Abu Sennan licence and we are pleased to be reporting this positive well test result, as we move to drill the final well of the 2022 drilling programme.

“This will be the ASW-1X exploration well - previously named ASF-1X - which is targeting eight million barrels of gross recoverable resources.”

At 1159 GMT, shares in United Oil & Gas were down 7.5% at 2.04p.

Reporting by Josh White for Sharecast.com.