United Oil & Gas plc announced strong finances for 2021 with a four-fold increase in post-tax profits from its oil and gas assets.
OPERATIONS
The group’s working interest for 2021 production averaged 2,327 boepd (2020: 2,195 boepd) in line with guidance of 2,100 – 2,300 boepd.
United recorded 100% drilling success in a five-well 2021 drilling campaign on the Abu Sennan licence in Egypt, replacing reserves.
The company was granted development concessions over the two commercial oil discoveries made through exploration drilling.
In Jamaica, United was granted a licence extension with the initial exploration period ending on 31 January 2024.
FINANCES
United’s group revenue doubled to $19.2m (2020: $9.1m) with gross profit of $12.2m (2020: $2.5m) and post-tax profit quadrupling to $4.1m (2020: $0.9m).
This was for a significantly higher realised oil price of $68.9 /bbl (2020: $37.8 /bbl).
Cash collections were $17.3m (2020: $9.5m) with cash operating costs of $5.90 /boe (2020: $5.77 /boe).
The group cash balance was at $0.4m (2020: $2.2m).
2022 GUIDANCE
The group’s working interest production in Egypt for the full year 2022 is forecast to average at 1,500 – 1,650 boepd net.
This includes production from current wells and production from the two further development wells to be drilled this year which are expected to come on stream Q3/Q4 2022.
Two planned wells are excluded from the guidance figures.
Group cash capital expenditure for the full year is forecast to be $7.2m, fully funded from existing operations.
United will invest approximately $6.8m in Egypt on five wells, eight workovers, and facility upgrades.
The company will spend $0.4m across its other assets.
OUTLOOK
The company said that multiple growth opportunities existed in its current portfolio, including in Egypt, Jamaica, the UK Central North Sea and new business opportunities.
OPPORTUNITIES
Chief executive Brian Larkin said that company had re-focused its portfolio to offer attractive growth and investment opportunities.
“We have much to look forward to in 2022, with the five-well drilling campaign in Egypt which has had a great start with the successful ASD-2 development well and the recent spudding of the ASD-1X exploration well.
“In Jamaica the combination of support from our stakeholders in the form of a licence extension and high oil price have re-invigorated the farmout campaign while in the UK, we are excited about the commercialisation opportunities that the licence containing the Maria discovery offers.”