United Oil & Gas plc announced it had agreed a third well for 2021, the AJ-8 development well, at the Abu Sennan joint venture (JV) licence in Egypt.
The news came as the company started drilling the ASD-1X exploration well on 6 March.
The programme is expected to take up to 60 days aims to test a number of stacked reservoir targets.
United said that the entire drill campaign was funded from operational cash flow.
The company holds a 22% working interest in the Abu Sennan joint venture licence, which is operated by Kuwait Energy Egypt.
ASD-1X
ASD-1X is a vertical exploration well, located 12km to the north-east of the producing Al Jahraa Field, primarily targeting the sandstone reservoirs of the Abu Roash ‘C’ and ‘E’, with the Abu Roash ‘G’ reservoir providing a secondary target.
The targeted reservoirs are expected to be encountered between 3,000m and 3,500m measured depth.
United added that the well would be drilled by the EDC-50 rig, which recently completed the ASH-3 development well ahead of schedule and under budget.
If successful, the ASD-1X well can rapidly be placed on production through existing infrastructure.
ASD-1X is the second well to be drilled in the 2021 campaign and, subject to approvals, the AJ-8 development well will follow.
AJ-8, originally scheduled for 2020, was deferred due to the lower oil price environment.
The well will target the Abu Roash and Bahariya reservoirs in an undrained area of the Al Jahraa Field and will be drilled by the EDC-50 rig after completing ASD-1X.
“There is considerable exploration potential in the Abu Sennan licence, and it is great to be actively drilling wells to unlock that potential,” said United chief executive Brian Larkin.
“The improving oil price environment of recent months has significantly enhanced operational cashflows and improved the economics of additional development wells so it is also very pleasing to have confirmation of the drilling of the AJ-8 development well immediately after completion of ASD-1X.”