United Oil & Gas plc expects drilling to start over the coming days on the final well of 2023 on the Abu Sennan licence in the Western Desert, Egypt.
RESERVOIRS
Exploration well ASD S-1X well is targeting an un-risked STOIIP* estimated by United at c.10mmbbls gross across multiple reservoirs intervals, including the primary Abu Roash-C and Abu Roash-E.
The company (22%) said that the ASD S prospect had been de-risked by the ASD field, located c.2km to the north, which currently produces oil from the same primary reservoirs targeted in the well.
Partner and operator Kuwait Energy Egypt (Kec) will take around 40 days, using the ECDC-6 rig, to drill and log. On indications of moveable hydrocarbons, the well will be completed and tested.
United expects the group’s working interest production to average 1024 boepd (946 bopd oil and 78 boepd gas) for the year to 5 November 2023, in line with full-year 2023 unchanged guidance of 930 to 1,030 boepd.
Full-year guidance includes production from the current wells and contributions from workover activity being undertaken on the fields.
US DOLLAR
The company added that macroeconomic issues in the Egyptian economy had reduced US dollar liquidity, affecting the company’s ability to repatriate funds from Egypt.
Over the last month, renewed conflict in the region has exacerbated the situation.
National oil company Egyptian General Petroleum Corporation (EGPC) makes regular payments to the company against the receivable balance, including Egyptian pound payments equivalent to $1.8m since 31 October.
However United has received no US dollar payments since August 2023.
Chief executive Brian Larkin said: “In relation to our position in Egypt, we believe our assets there hold substantial value including the potential value from the upcoming exploration well, but the current economic conditions in Egypt present challenges.
“We will continue to work with all our local Egyptian stakeholders including EGPC and Kec to maximise value for our shareholders from these assets.”
* stock tank oil initially in place
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