United Oil & Gas plc reported a successful first half of 2020 with group revenue of $2.4 million (£1.86m) and gross profit of $0.3 million (£0.23m) due to the company’s integration of its Egypt assets.
Interim results showed profit after tax at $1.8 million (£1.4m) with realised oil price of $28.26/bbl.
Cash collections in the four-month period were $3.6 million (£2.8m) and cash operating costs of $4.36/boe. The group’s cash balance stands at $1.2 million (£0.93m).
The hydrocarbon exploration, development and appraisal group has interests in Egypt, Italy, Jamaica, Central North Sea and the Weald Basin.
However has reviewed its Wessex Basin interests and now considers it to be non-core. The company is looking at alternatives for the portfolio.
Chief executive Brian Larkin said that 2020 had been successful for United, with the integration of the Egypt assets delivering “low cost, sustained production, material reserves growth and positive operating cash flow.”
“Looking ahead our focus remains on managing United in a responsible way as we allocate capital prudently and efficiently to grow the business. We are well placed to manage the challenges the industry is experiencing and to take advantage of an improvement in market conditions.”
OVERVIEW
United completed its acquisition of Rockhopper Egypt and during the first six months of 2020 production for H1 2020 averaged 1,975 boepd net
The ASH-2 and ES-5 Wells in Egypt increased working interest production from 1,709 boepd on 1 March 2020 to 2,716 boepd on 30 June 2020.
United said it would next year re-start drilling operations in Egypt with the ASH-3 development and expected to spud in late 2020/early 2021.
Installation of a gas pipeline to reduce flaring at the ASH field in Egypt will soon begin and is due to be completed before the end of 2020. It will deliver up to 7 mmscf/d (1.5 mmscf/d net) of gas.
In Jamaica, the group acquired 100% equity stake and operatorship of the Walton Morant licence along with a secured 18-month extension.
United was provisionally awarded Blocks 15/18e and 15/19c, containing the Maria and 15/18a-6 Discoveries, in the UK’s 32nd offshore licensing round.
Work to derisk further the acreage of the Walton Morant licence is underway, including the Colibri prospect estimated to contain 229 MMstb.
United’s licences in Italy are located in the Selva gas field in the North of the country, close to the epicentre of the Covid-19 outbreak. Final technical approval is expected in October 2020 and production, of approximately 2Bcf per annum (c. 875 boepd), is estimated to come on stream in 2021.
In the UK, United purchased a high-quality 3D seismic dataset covering Licence P2480 in the Central North Sea, acquired in the 31st Round in January 2020.
The licence includes multiple plays and low risk prospects with the Zeta prospect being the most promising.
On 3rd September 2020, United was provisionally awarded two Blocks in the UK’s 32nd offshore licensing round, close to Licence P2480 and containing the Maria and 15/18a-6 discoveries.