United Oil & Gas PLC on Tuesday said it has commenced production at the ASH-8 development well in the Abu Sennan licence, onshore Egypt.
The oil and gas company with projects in Egypt, Italy and the UK has a 22% working interest in the licence, which is operated Kuwait Energy Egypt.
Production at ASH-8 began on March 16 at an initial stabilised rate of around 2,980 gross barrels of oil per day and 2.6 gross million standard cubic feet per day, or around 656 net barrels of oil per day and 0.6 net million standard cubic feet per day.
United Oil & Gas said production has come onstream six weeks ahead of schedule, at a higher rate than originally forecast. As a result, group first half production is now expected to be at the upper end of the guided range of 700-900 net barrels of oil per day.
‘We are very happy with the results from the ASH-8 well, and it is pleasing to see the well being brought on stream at a stabilised production rate of over 2,900 [barrels of oil per day] some six weeks ahead of schedule. This is the fifth well in the highly productive ASH field, which has so far produced in excess of 4 million barrels of oil,’ said Chief Executive Officer Brian Larkin.
‘The successful result at ASH-8 will have a positive impact on group production levels and revenue and further highlights the long-term value of the field. We look forward to drilling the next development well at ASD-3 on a location that was high-graded by the [join-venture] partners following the success of the ASD-2 well in March 2022.’
Shares in United Oil & Gas were up 4.4% to 1.20 pence each in London on Tuesday morning.
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