United Oil & Gas issues the following trading update for the full year 2020 and guidance for 2021. This is in advance of the Group’s Full Year Results which are expected to be released in the second half of April 2021. The information contained herein has not been audited and may be subject to further review and amendment.
United Chief Executive Officer, Brian Larkin commented:
“2020 was a successful year for United, delivering an excellent operational and financial performance, despite a challenging commodity price environment and the global pandemic. We successfully integrated our Egyptian assets, delivering average 2020 working interest production of 2,195 boepd, creating revenue of c. $9.0 to $9.2m (net of government take) for the ten months since completion of the acquisition.
“United begins 2021 in strong position with a balanced portfolio, low-cost growing production, high quality reserves and a healthy balance sheet. The business is well placed to benefit from rising hydrocarbon prices but also well hedged to protect against volatility. Our fully funded, multi-well drilling programme in Egypt has begun with the result of the ASH-3 well expected shortly. This low-risk well has the potential to build on the successes of 2020 by delivering increased production and reserves. A formal farm-out process will shortly commence seeking partners to join us in unlocking the potential in our high impact Walton Morant exploration licence in Jamaica, and our Italian asset remains on track for first gas in 2021.”
· Group working interest production in Egypt is forecast to average between 2,300 and 2,500 boepd for H1 2021. Further updates will be provided as the 2021 drilling programme progresses
· A reserves uplift is expected following the success of the El Salmiya 5 and ASH 2 wells in 2020 (subject to independent certification with publication expected during H1-21)
· Group Capital Expenditure is forecast to be $5.3m, fully funded from existing operations
o c. $4.7m to be invested in Egypt with two firm wells, five workovers, and facilities upgrades
· Flexibility exists within the Abu Sennan joint venture and the EDC-50 rig contract to add up to two further wells in the Abu Sennan drilling campaign subject to well results and the commodity price environment