United Oil and Gas plc said its strong financial and performance during 2020 has well placed the company to build on its successes and withstand uncertain hydrocarbon prices.
In its trading report for 2020, the oil and gas production, development, exploration and appraisal group, announced it had total revenues of $9 to $9.2 million for the full year 2020 and group cash balance of $2.1m.
Its working interest production was 2,195 barrels of oil equivalent per day (boepd) with a realised oil price of around $37.7 /bbl.
Total cash collections were recorded at $9.8m and cash capital expenditure was $2.5m.
United added that its working interest production in Egypt was forecast to average between 2,300 and 2,500 boepd for the first half of 2021.
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 2021
Group capital expenditure is forecast to be $5.3m and fully funded from existing operations.
Some $4.7m will be invested in Egypt with two firm wells, five workovers, and facilities upgrades
United added that flexibility existed 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.
The company said that it also aimed to invest $0.6m in its Jamaican and Italian as well as onshore / offshore UK assets (Wessex Basin, Wytch Farm in Dorset, and Zeta in the Outer Moray Firth Basin).
United chief executive Brian Larkin said that a formal farm-out process would shortly begin for partners in the Walton Morant exploration licence in Jamaica.
The company’s Italian asset, the Selva gas field in the Podere Gallina licence in the Po Valley, remained on track for first gas in 2021.
Mr Larkin added that 2020 had been a successful year for the company with an “excellent operational and financial performance.”
“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.”