EGYPT: United Oil & Gas Provides H1 2021 Operational Update

Operational Highlights:

·    Q2/21 Group working interest production averaged 2,937 boepd, yielding a H1/21 average of 2,730 boepd,  ahead of H1 guidance of 2,300 to 2,500 boepd and in line with full-year guidance of between 2,500 and 2,700 boepd

o  This represents an uplift of 17% compared to H2 2020, when production averaged 2,340 boepd, and has been driven by the drilling and workover success on the ASH Field, as well as the exploration success at ASD-1X

·    Highly successful H1 drilling campaign, with the Abu Sennan Licence continually performing above the company’s expectations

o  ASH 3 – Significant success at the ASH-3 Development Well which came onstream at a gross rate of over 4,000 boepd on 5th March (880 boepd net to United)

o  ASD1-X – Commercial discovery announced on 4th May, with gross rates of over 1,200 bopd achieved on test. Development lease approval and commencement of production occurred on 26th May, with the well averaging over 600 bopd (132 bopd net to United) to the end of June

o  Al Jahraa 8 Development Well (post period end) encountered over 40m of net oil pay across three different reservoir units. Preliminary results indicate over 30m of net pay in the Upper and Lower Bahariya reservoirs, significantly above pre-drill expectations.

o  ASH-1ST2 workover completed during May increased production from the well from 200 bopd to over 1,200 bopd (256 bopd net to United)

·    As previously noted, an additional fully funded exploration well (ASX-1X) has now been added to the drilling schedule, following the significant success of the 2021 drilling campaign

United Chief Executive Officer, Brian Larkin commented: 

“Through execution of our planned work programme, the first half of 2021 has produced exceptional operational and financial success. In addition, we have created significant new opportunities as well as reinforced the balance sheet strength of the Company. 

“In particular, our Egyptian assets continue to perform beyond expectations, with production averaging 2,730 boepd; consistent with full year guidance range of between 2,500 to 2,700 boepd. Further, through our H1 drilling programme, we have not only been able to increase production, but also identify new growth opportunities within the licence. Based on this success, we are delighted to be drilling a further exploration well on the licence shortly and are actively working with Joint Venture Partners to agree the optimum long-term strategy for the development of the licence’s potential. 

“The outlook for the business remains encouraging and we remain well positioned for further success”.

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