United Oil & Gas (UOG) Shares Surged 10% on Upbeat H1 Results

Key points:
United Oil & Gas shares surged 10.5% on upbeat half-year results.
The oil & gas firm achieved multiple milestones during the period.
UOG shares look attractive at current prices. Are they a buy?

The United Oil & Gas PLC (LON: UOG) share price surged 10.5% after its half-year results, highlighting the firm’s successes over the year’s first six months. For example, the oil & gas firm’s daily production rate was 1,552 barrels.

The company netted higher crude oil prices at $105.5/bbl compared to H1 2021, when average oil prices were at $63.1/bbl. However, the company’s revenues fell to $9.8 million compared to the $10.2 million recorded in a similar period last year.

Also read: Best Oil Stocks To Buy Right Now.

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United Oil & Gas also revealed that its gross profits, excluding Egypt’s gross taxes, were $5.6 million, slightly lower than the $5.7 million reported in H1 2022. The company had $3.8 million in cash at the end of June, but the figure had risen to $4.7 million by 23 September 2022.

The oil and gas company also updated investors on the progress made in its drilling programmes. The company has drilled three of the five wells planned for the 2022 drilling campaign.

United Oil & Gas noted that the ASV-1X exploration well did not yield commercial volumes, but the AJ-14 development well encountered seven metres of net pay. The company currently conducts well simulation and expects the AJ-14 well to produce 300 bopd.

The company is currently drilling the ASH-4 development well, targeting over 2 million barrels gross in the prolific Alam El Bueib reservoir, which started after the period ended. In addition, the firm noted a significant increase in the interpreted in-place volumes in the ASH field.

United Oil & Gas reported Zero – Lost Time Incident Frequency and Fatal Accident Frequency rates. There were also no environmental spills, Restricted Work Incidents or Medical Treatment Incidents.

Investors cheered the news, as evidenced by the rally in UOG shares. The shares rallied off a critical support level, and it will be interesting to see if today’s rally will lead to a sustained rally in UOG shares. Nevertheless, the shares look attractive at current prices.

*This is not investment advice.

United Oil &Gas (UOG) share price.

The United Oil &Gas (UOG) share price surged 10.49% to trade at 1.58p, rising from Monday’s closing price of 1.43p.