The United Oil & Gas PLC (LON: UOG) share price surged 31.7% after issuing an update about its Egypt operations, where it holds a 22% non-operating stake in the Abu Sennan license area operated by Kuwait Energy Egypt.
eToro is a multi-asset investment platform. The value of your investments may go up or down. Your capital is at risk.
The company revealed that it had started drilling the ASD-3 development well about 1.2km northwest of the ASD-2 well drilled in March 2022. It has since produced over 400,000 barrels of oil since it started production slightly over a year ago.
Top Broker Recommendation
- BlackBull 26,000+ Shares, Options, ETFs, Bonds, and other underlying assets – Read our Review
- Admiral Markets More than 4500 stocks & over 200 ETFs available to invest in – Read our Review
- Hargreaves Lansdown The company's website is easily understandable and accessible to a wide range of customers – Read our Review
- eToro Wide range of instruments available to trade – Read our Review
- IG Top-tier regulation – Read our Review
YOUR CAPITAL IS AT RISK. 76% OF RETAIL CFD ACCOUNTS LOSE MONEY
The ASD-3 well primary targets are the Abu Roash-C (ARC) and Abu Roash-E (ARE) reservoirs, with secondary targets in the Lower Bahariya. The well is expected to reach a total depth of 3,649 metres and could take about 55 days to drill and complete.
United Oil and Gas also issued a production update for the Abu Sennan license area, whose production averaged 841 bopd. The quarter’s exit rate was 1,275 bopd oil and 170 boepd gas (1,445 boepd net).
The production figures include the material contribution from the ASH-8 well, which has maintained a stable flow rate with no water cut since it started production on 16 March 2023.
Jonathan Leather, an Executive Director of United Oil and Gas with over 20 years of experience in the oil and gas industry, reviewed and approved the operations update.
Dr Jonathan Leather is a qualified person as defined in the guidance note for Mining Oil & Gas Companies of the London Stock Exchange.
Brian Larkin, United Oil’s CEO, commented: “We are happy to report that the next well in our 2023 drilling campaign has spud at ASD-3, in an area of the field we believe contains extensive unrecovered resources. We are excited by the potential that this well is planned to test and the follow-on development drilling targets it could unlock in a success case. It is also really pleasing to see the continued strong production performance from the ASH-8 well, which supports our view that there is significant long-term value remaining in the Abu Sennan licence.”
*This is not investment advice.
United Oil & Gas (UOG) share price.
The United Oil and Gas (UOG) share price surged 31.67% to trade at 1.58p, from Monday’s closing price of 1.20p.
eToro is a multi-asset investment platform. The value of your investments may go up or down. Your capital is at risk.