United Oil & Gas PLC on Tuesday said that operations at the Abu Sennan licence are progressing well, as drilling begins at the ASD-3 development well.
United Oil & Gas is an oil and gas company with projects in Egypt, Italy and the UK. It holds a 22% non-operating interest in the Abu Sennan licence, which is operated by Kuwait Energy Egypt.
Shares in the company were trading 24% higher at 1.49 pence each in London on Tuesday morning.
Drilling has begun at the ASD-3 development well, which has primary targets in the Abu Roash-E and Abu Roash-C reservoirs, as well as secondary objectives in the Lower Bahariya. The well has a likely total depth of 3,649 metres, and is expected to take approximately 55 days to drill and complete.
For the first quarter of 2023, United’s net oil production from Abu Sennan averaged 841 barrels of oil per day.
‘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,’ said Chief Executive Officer Brian Larkin.
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