United Oil & Gas said its Egyptian assets had performed beyond expectations during the first half of 2021.
ABU SENNAN
Revenues for H1 2021 are expected to be $10.3 to $10.5 million.
Group cash balance was $2m, total cash collections of $8.2m and cash capital expenditure of $3m.
United invested $2.2m in the Abu Sennan drilling campaign and workover activities and $200,000 in its Jamaican, Italian and UK assets.
The group reported Q2 2021 working interest production of an average 2,937 boepd, yielding a H1 2021 average of 2,730 boepd.
This is ahead of H1 guidance of 2,300 to 2,500 boepd and in line with full-year guidance of 2,500 to 2,700 boepd.
The figures are a 17% increase (H2 2020: 2,340 boepd) due to the drilling and workover success on the ASH field and the exploration success at ASD-1X at Abu Sennan.
United said it had also identified new growth opportunities on the licence.
In Jamaica, the company completed a revision of the regional source rock story with the basin-wide potential quantified in Q1.
The formal farm-out campaign for the Walton Morant licence began in early April, with “a number of companies” currently conducting evaluations.
The block contains more than 2.4 billion barrels unrisked mean prospective resources with the high-impact Colibri prospect alone containing mean prospective resources of 406 mmbbls.
In Italy, the Government granted environmental approval in April to develop the Selva gas concession.
2021 GUIDANCE
Working interest production in Egypt for the full year is forecast to average 2,500 to 2,700 boepd.
Full-year group cash capital expenditure is forecast to be $7.2m fully funded from existing operations.
United expects to invest $6.5m in Egypt with four wells, five workovers and facilities upgrades.
Some $700,000 will be invested in its Jamaica, Italy and the UK interests.
The company also expects later this year $2.85m relating to the divestment of licence P2366 containing the Crown discovery from Anasuria Hibiscus UK Ltd (AHUK).
“Through execution of our planned work programme, the first half of 2021 has produced exceptional operational and financial success,” said chief executive officer Brian Larkin.
“In addition, we have created significant new opportunities as well as reinforced the balance sheet strength of the company.
“The outlook for the business remains encouraging and we remain well positioned for further success.”