United Oil & Gas plc announced it expected to exceed the previous guidance of 2,300 boepd when the company starts drilling at its joint venture Abu Sennan licence, onshore Egypt.
DRILL CAMPAIGN
The company said it had awarded an EDC-50 rig contract with low-cost rig rates linked to oil prices.
The rig is due to mobilise before the end of 2020 and the campaign, funded from operating cash flow, is expected to take up to 60 days.
Drilling will start with the ASH-3 development well and subsequent targets to include a low-risk exploration well, and a further development well on the ASH structure.
The ASH gas pipeline will increase production from the start of 2021.
MAPPED PROSPECTS
Chief executive Brian Larkin said the company had worked closely with the operator, Kuwait Energy Egypt, over recent months to design the 2021 drill campaign.
“The scheduled wells can maintain the exceptional record of over 80% drilling success which has been achieved on the licence to date.
“The Abu Sennan licence continues to perform strongly and deliver low cost production growth.
“With over 35 mapped prospects on the licence, and following on from the outstanding success of the ASH-2 and ES-5 wells where drilling outcomes significantly exceeded pre-drill expectations, it offers excellent potential to deliver even greater returns for the licence partners.”
ASH-2 PRODUCTION WELL
United will target the producing Alam El Bueib (AEB) reservoirs in an area of the ASH field up-dip of the ASH-2 production well which to date has produced more than one million barrels.
The ASH-2 gas pipeline is expected to be brought onstream at the start of 2021 and will increase recovery rates and reduce the need to flare gas.
United said ASH-2 had the potential to add up to 1,000 boepd of gross production.
EXPLORATION WELL
The company expects the second well in the programme to be an exploration well, targeting the Abu Roash reservoirs in the north of the Abu Sennan licence, close to the producing Al Jahraa field.
The well is low risk, located close to existing infrastructure, and could be quickly brought into production.
PRODUCTION RATES
“Average production rates on the Abu Sennan licence for the second half of 2020 to 29 November are circa 2,370 boepd net to United’s working interest,” said the company in a statement.
“This is a 20% increase to the average H1 production achieved after United’s entry to the licence at the end of February.
“Average H2 production is likely to exceed the previous guidance of 2,300 boepd net.”
United Oil & Gas’ portfolio also includes interests in the UK, Italy and Jamaica.