Sam is a professional trader and the lead stock market news writer at AskTraders. After starting his career in the forex market, Sam now focuses on gold and stocks with a preference for fundamental and macroeconomic analysis.
On Tuesday, United Oil & Gas (LON: UOG) said that its ASX-1X exploration well encountered at least 10m net pay in several oil-bearing reservoirs, resulting in its share price rising.
The AIM-quoted company said the preliminary interpretations suggest the 10m net pay in the Abu Sennan licence, onshore Egypt, included the primary reservoir targets of the Abu Roash Formation.
Completion of the well and well-testing is now being planned, and if successful, an application to the Egyptian General Petroleum Corporation for a development lease will be made.
United has a 22% working interest in the Abu Sennan licence, operated by Kuwait Energy Egypt.
UOG's CEO, Brian Larkin, commented: “Today's announcement is the fourth positive well result from Abu Sennan in 2021. With the well testing set to begin shortly, we look forward to understanding the full potential of the ASX-1X well.
“This is the second exploration well drilled in 2021 on Abu Sennan and gives us further confidence in the value of the remaining exploration potential of the licence. We are also pleased to be planning the drilling campaign for next year and beyond.”
United Oil & Gas shares are trading at 22.53p on Tuesday morning, up 3.06%. Earlier in the session, UOG shares traded at a high of 2.58p. Positive drill results from the Abu Sennan licence in April saw the company's shares close over 4% higher on the day.
United Oil and Gas shares are traded on the London stock exchange's AIM market (the alternative investment market), which is the submarket specifically for smaller companies. AIM stocks are attractive to investors as they have tax advantages and smaller companies have the potential to benefit from rapid growth. But are UOG shares the best buy? Our stock market analysts regularly review the market and share their picks for high growth companies
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