{"id":8421,"date":"2020-06-24T12:54:31","date_gmt":"2020-06-24T12:54:31","guid":{"rendered":"http:\/\/oilnewskenya.com\/?p=8421"},"modified":"2020-06-24T12:54:31","modified_gmt":"2020-06-24T12:54:31","slug":"egypt-abu-sennan-reserves-upgrade-production-update","status":"publish","type":"post","link":"https:\/\/www.oilnewskenya.com\/index.php\/egypt-abu-sennan-reserves-upgrade-production-update\/","title":{"rendered":"EGYPT: Abu Sennan Reserves Upgrade, Production Update"},"content":{"rendered":"

United Oil & Gas Plc has provided the following update on the Abu Sennan concession, Egypt in which UOG holds a 22% working interest. This includes a production update covering the first half of June and the results of an Independent Reserves Report which estimates gross 2P reserves at Abu Sennan increased to 13.5 MMboe from 12 MMboe over the course of 2019 following drilling success.<\/span><\/span>\u00a0<\/span><\/p>\n

Production<\/span><\/strong><\/p>\n

Production from the Abu Sennan concession has continued to outperform the Company’s pre-completion expectations, with production from the first half of June averaging 13,900 boepd gross (3,060 boepd net). This has been underpinned by strong production from the El Salmiya-5 well-testing (c. 4,000 bopd and over 16 MMscf\/d gross (c. 7,200 boepd) from the El Salmiya Field since the beginning of June), and continuing consistent production from the ASH-2 well, which was successfully drilled and brought online in\u00a0January 2020. Although it is still early days on the El Salmiya-5 well, and United expect the well to be choked back in order to optimise ultimate recovery, the results to date have clearly demonstrated the capacity of the well to deliver high production rates. Production at Abu Sennan continues to benefit from low operating costs of c.\u00a0$6.50\/bbl.<\/span><\/p>\n

\u00a0<\/span>Reserves<\/span><\/strong><\/p>\n

The results of an Independent Reserves Report that was completed on the Abu Sennan concession at the end of 2019 by\u00a0Gaffney, Cline & Associates, using PRMS definitions for Reserves and Resources, has now become available to United. The results are summarised in Table 1, below. The report indicates that gross 2P reserves have increased to 13.5 MMboe (15% gas) compared to 12 MMboe at the end of 2018. This is an annual increase of 12.5%, and given that nearly 1.7 MMboe was produced from the Abu Sennan assets during 2018, indicates a reserves replacement ratio for 2019 of 190%. Gross 1P and 3P reserves have also increased, with 1P reserves up by 76% to 4.2 MMboe and 3P reserves up by 46% to 28.6 MMboe (from 2.4\u00a0 MMboe and 19.6 MMboe respectively at the beginning of 2019).<\/span>\u00a0<\/span><\/p>\n

Applying United’s 22% working interest to the gross 2P reserves at the end of 2019 gives 2.97 MMboe, up from 2.64 MMboe at the end of 2018.<\/span>\u00a0<\/span><\/p>\n

It is worth noting that although the Independent Reserves Report included an uplift for the results of the ASH-2 well and the Al Jahraa gas that was brought onstream in\u00a0March 2020, it was completed prior to the results of the El Salmiya-5 well. Similarly, as the report also predates the approval of the plans to bring the gas from the ASH field onstream, this gas is only included as contingent resources, with 2C estimates of 0.73 MMboe gross. These two developments would almost certainly have a further positive uplift on reserves.<\/span>\u00a0<\/span><\/p>\n

Table 1. Reconciliation of Abu Sennan Reserves as at 31st<\/sup>\u00a0December 2019\u00a0with Reserves as at 31st<\/sup>\u00a0December 2018<\/span><\/p>\n

\u00a0<\/span><\/p>\n\n\n\n\n\n\n\n
<\/td>\n\n

Gross Field Reserves\u00a0<\/span>(Mboe)<\/span><\/p>\n<\/td>\n<\/tr>\n

\n

End 2018<\/span><\/p>\n<\/td>\n

\n

Exploration Adds<\/span><\/p>\n<\/td>\n

\n

2019 Production<\/span><\/p>\n<\/td>\n

\n

Revisions<\/span><\/p>\n<\/td>\n

\n

End 2019<\/span><\/p>\n<\/td>\n<\/tr>\n

\n

Proved<\/span><\/p>\n<\/td>\n

\n

2,373<\/span><\/p>\n<\/td>\n

\n

259<\/span><\/p>\n<\/td>\n

\n

-1,647<\/span><\/p>\n<\/td>\n

\n

3,191<\/span><\/p>\n<\/td>\n

\n

4,179<\/span><\/p>\n<\/td>\n<\/tr>\n

\n

Proved + Probable<\/span><\/p>\n<\/td>\n

\n

12,004<\/span><\/p>\n<\/td>\n

\n

702<\/span><\/p>\n<\/td>\n

\n

-1,647<\/span><\/p>\n<\/td>\n

\n

2,463<\/span><\/p>\n<\/td>\n

\n

13,526<\/span><\/p>\n<\/td>\n<\/tr>\n

\n

Proved + Probable + Possible<\/span><\/p>\n<\/td>\n

\n

19,624<\/span><\/p>\n<\/td>\n

\n

2,213<\/span><\/p>\n<\/td>\n

\n

-1,647<\/span><\/p>\n<\/td>\n

\n

8,395<\/span><\/p>\n<\/td>\n

\n

28,859<\/span><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

Notes:<\/span><\/p>\n

1.\u00a0\u00a0\u00a0 Revisions are due to production performance in 2019, the results of wells drilled in 2019, and the maturation of the gas development for Al Jahraa; exploration adds include the AS-Z discovery and the AR-E, AR-G, Upper Bahariya and Lower Bahariya II pools discovered by Al Jahraa-7<\/span><\/p>\n

2.\u00a0\u00a0\u00a0 2019 production is estimated based on actual production to end\u00a0October 2019<\/span><\/p>\n

3.\u00a0\u00a0\u00a0 Totals may not exactly equal the sum of the individual entries due to rounding<\/span><\/p>\n

4.\u00a0\u00a0\u00a0 United holds a 22% net working interest in the Abu Sennan concession<\/span><\/p>\n

\u00a0<\/span>Jonathan Leather, COO, United Oil & Gas Plc:<\/span><\/p>\n

“It is really pleasing to see the Abu Sennan assets continuing to perform so strongly and the potential that we recognised in the assets being realised. Much as we expect the production at the El Salmiya-5 well to be choked back from the current levels, it is fair to say that net production of over 3,000 boepd at this stage has surpassed even our own high expectations for the Licence.<\/span>\u00a0<\/span><\/p>\n

“We remain highly confident that the Licence has more to offer.\u00a0 Further development at the ASH field is expected to deliver additional gas before the end of the year, further enhancing production and cashflow. We also see substantial exploration opportunity on the licence and are working towards optimising targets for further exploration drilling in due course.\u00a0<\/span>\u00a0<\/span><\/p>\n

“This independent review of reserves should send a clear message about the strength of the Company’s Egyptian assets and, together with our booked reserves at the Selva field in\u00a0Italy, serves to highlight the considerable asset value behind United – a notable discrepancy when compared to our current market capitalisation.\u00a0 We look forward to working with our partners to maximise the value of those reserves for our shareholders.”<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

United Oil & Gas Plc has provided the following update on the Abu Sennan concession, Egypt in which UOG holds a 22% working interest. This includes a production update covering … Read More<\/a><\/p>\n","protected":false},"author":24,"featured_media":8422,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2},"jetpack_post_was_ever_published":false},"categories":[7442,7446,11],"tags":[7450,7653,7656,7657,7660,7655,709,7654,4268,7659,7661,7658],"class_list":["post-8421","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-countries","category-north-africa","category-top-news","tag-abu-sennan","tag-al-jahraa-gas","tag-ar-e","tag-ar-g","tag-as-z-discovery","tag-ash-field","tag-egypt","tag-el-salmiya-5-well","tag-gaffney-cline-associates","tag-lower-bahariya-ii","tag-united-oil-gas-plc","tag-upper-bahariya","entry"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2020\/06\/Abu-Sennan.png?fit=591%2C472&ssl=1","jetpack_shortlink":"https:\/\/wp.me\/p5JWkQ-2bP","jetpack-related-posts":[{"id":10284,"url":"https:\/\/www.oilnewskenya.com\/index.php\/united-oil-and-gas-asd-1x-well-test-update-submission-of-notice-of-commercial-discovery\/","url_meta":{"origin":8421,"position":0},"title":"United Oil and Gas ASD-1X Well Test Update & Submission of Notice of Commercial Discovery","author":"","date":"May 5, 2021","format":false,"excerpt":"United Oil & Gas has provide the following update on the testing of the ASD-1X exploration well in the Abu Sennan concession, onshore Egypt and the spudding of the AJ-8 development well. United holds a 22% non-operating interest in Abu Sennan, which is operated by Kuwait Energy Egypt (\"KEE\").\u00a0 Highlights\u2026","rel":"","context":"In "Countries"","block_context":{"text":"Countries","link":"https:\/\/www.oilnewskenya.com\/index.php\/category\/countries\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2020\/06\/Egypt-Abu-Sennan.jpg?fit=750%2C406&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2020\/06\/Egypt-Abu-Sennan.jpg?fit=750%2C406&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2020\/06\/Egypt-Abu-Sennan.jpg?fit=750%2C406&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2020\/06\/Egypt-Abu-Sennan.jpg?fit=750%2C406&ssl=1&resize=700%2C400 2x"},"classes":[]},{"id":10213,"url":"https:\/\/www.oilnewskenya.com\/index.php\/egypt-united-oil-and-gas-reports-material-upgrade-to-abu-sennan-reserves\/","url_meta":{"origin":8421,"position":1},"title":"EGYPT: United Oil and Gas Reports Material Upgrade to Abu Sennan Reserves","author":"","date":"April 14, 2021","format":false,"excerpt":"Highlights: \u00b7\u00a0\u00a0\u00a0\u00a0Independent reserves and resources report, relevant to end 2020, by Gaffney Cline & Associates\u00a0 indicates material increase in reserves at Abu Sennan: o\u00a0\u00a024% increase in Abu Sennan Gross 2P Reserves to 16.8 MMboe (15% gas) from 13.5 MMboe at the beginning of 2020, representing a near 200% reserves replacement\u2026","rel":"","context":"In "Countries"","block_context":{"text":"Countries","link":"https:\/\/www.oilnewskenya.com\/index.php\/category\/countries\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2020\/09\/EGYPT-Abu-Madi-West-Development-Lease.jpg?fit=512%2C361&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":10663,"url":"https:\/\/www.oilnewskenya.com\/index.php\/egypt-united-oil-and-gas-announces-successful-testing-of-al-jahraa-8-development-well\/","url_meta":{"origin":8421,"position":2},"title":"EGYPT: United Oil and Gas Announces Successful Testing of Al Jahraa-8 Development Well","author":"","date":"August 2, 2021","format":false,"excerpt":"United Oil & Gas has provided the following update on the testing of the Al Jahraa-8 (\"AJ-8\") development well in the Abu Sennan concession, onshore Egypt (the \"Licence\"). 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The ASD-3 well\u2026","rel":"","context":"In "Countries"","block_context":{"text":"Countries","link":"https:\/\/www.oilnewskenya.com\/index.php\/category\/countries\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2023\/04\/Egypt-Abu-sennan-3.png?fit=379%2C320&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]}],"jetpack_sharing_enabled":true,"jetpack_likes_enabled":true,"_links":{"self":[{"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/posts\/8421","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/users\/24"}],"replies":[{"embeddable":true,"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/comments?post=8421"}],"version-history":[{"count":1,"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/posts\/8421\/revisions"}],"predecessor-version":[{"id":8423,"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/posts\/8421\/revisions\/8423"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/media\/8422"}],"wp:attachment":[{"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/media?parent=8421"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/categories?post=8421"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/tags?post=8421"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}