United Oil & Gas plc recorded its first year of revenues in 2020 and raised 2021 full-year production guidance for its licences in Egypt.
ABU SENNAN
Results for the year ended 31 December 2020 showed group profit of $850,000 with $9.1m (£6.5m) revenues from its Rockhopper Egypt acquisition (28 February – 31 December 2020).
United’s cash capital expenditure was $2.5m and cash generated from operation activities was $4.8m. The company had a cash balance of $2.2m at 31 December 2020.
At the Abu Sennan licence in Egypt, United’s working interest in production averaged 2,195 boepd.
The ASH-2 and ES-5 development wells increased working interest production from 1,709 to 2,389 boepd.
An independent reserves report from the end of 2020 indicated a 24% increase in Abu Sennan gross 2P reserves to 16.8 Mmboe.
Completion of the ASH and Al Jahraa gas pipelines contributed an additional 312 boepd to United.
JAMAICA AND IRELAND
United secured Jamaican exploration assets of a 100% equity stake and operatorship of the Walton Morant licence with an 18-month extension.
A prospective resources report showed an unrisked mean potential of more than 2.4 billion barrels across 11 prospects and leads.
In the UK’s 32nd offshore licensing round, United was awarded bocks 15/18e and 15/19c containing the Maria, Brochel and Maol discoveries in the UK North Sea.
United said that the group’s working interest production was ahead of expectations and raised full year guidance to 2,500 – 2,700 boepd with the ASH-3 and ASD-1X wells likely to increase reserves.
The group’s capital expenditure is forecast to be $6m and is fully funded from existing assets.
United added it would invest $5.4m in Egypt and $600,000 in its Jamaica, Italy and UK projects.
EXCEPTIONAL
During 2020, the company completed its acquisition of Rockhopper Egypt, an equity placing and re-admission of the enlarged group to AIM of the London Stock Exchange.
Iman Hill and Tom Hickey were appointed as non-executive directors.
In September 2020, United also established an environmental, social and governance (ESG) board committee.
The company expects strong cash generation throughout 2021, in line with increased production and pricing, particularly during H2 with drilling costs almost entirely in H1.
“2020 was a landmark year for United Oil & Gas, building on strong foundations to position ourselves as a full-cycle oil and gas company with strong production, diverse assets, an exceptional board and clearly defined avenues to deliver further material growth,” added chief executive Brian Larkin.