16:23 Thu 03 Sep 2020
United Oil & Gas PLC - Provisional Award of Two Blocks in the North Sea

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF THE MARKET ABUSE REGULATION (EU NO. 596/2014) ("MAR").
("United" or, "the Company")
Provisional Award of Two Blocks in the
· Blocks cover c.225km2 in an area close to the Marigold and Yeoman discoveries and the substantial Piper, MacCulloch and Claymore oil fields
· Minimal cost work programme agreed, which will involve the purchase of an existing high-quality 3D seismic dataset and detailed geological and geophysical analysis
· Awarded blocks include:
o the Palaeocene Maria discovery, which United estimated as part of its licence application to hold c. 6 MMboe mid-case recoverable resources
o two Jurassic discoveries; Brochel and 15/18a-6, the latter of which was drilled by Shell in 1987 and flowed at over 2,000 boepd on test
o the Palaeocene Dunvegan prospect
· New blocks are adjacent to United's P2480 Licence, containing the Zeta prospect, providing the Company with a balanced portfolio of discovered and prospective resources in an area of the
Blocks 15/18e and 15/19c
The Company has been provisionally awarded a 100% interest in Blocks 15/18e and 15/19c, which cover an area of c. 225 km2 and contain multiple targets. The Blocks are less than 10km away from United's P2480 Licence, which contains the Zeta prospect, and add a number of existing discoveries and prospects to United's exciting portfolio of assets in what is a highly-prospective and active area. The Blocks are close to the Piper, MacCulloch and Claymore oil fields, and adjacent to the Marigold and Yeoman discoveries, which are currently being developed by
Block 15/18e contains the Palaeocene Forties Maria Discovery. This was initially discovered in 1976 by Shell/Esso and later appraised by two further wells. United's internal analysis, completed as part of the application, suggests that this is likely to contain c. 6 MMboe of recoverable resources. Analysis suggests that the commercial threshold for oil developments with proximity to infrastructure in this part of the
Block 15/18e also contains two Jurassic discoveries, Brochel and 15/18a-6. 15/18a-6 was drilled by Shell in 1987, and on test flowed at over 2,000 boepd from two separate Jurassic reservoirs.
A further Palaeocene prospect - Dunvegan - has also been identified straddling the boundary between Blocks 15/18e and 15/19c.
The Blocks have been awarded on the basis of a work programme involving the purchase of an existing high-quality 3D seismic dataset and detailed geological and geophysical analysis. This analysis is planned to reduce the uncertainty on the estimated oil volumes, ahead of making a drilling commitment. This will require a low capital outlay by the Company. Subject to final award, the Company would expect to see the work programme commence in early 2021.
"We are delighted with these awards which, based on extensive technical work carried out over the available acreage ahead of the application, were our primary focus for the 32nd Round. The discovered resources and additional prospects we have added in these North Sea Blocks are significant in their own right, but when combined with our neighbouring Zeta licence, provide an exciting portfolio of discoveries and prospects in an active area of the
"United has a proven record of success in
ENDS
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Beaumont Cornish Limited (Nominated Adviser) | |
| +44 (0) 20 7628 3396 |
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| +44 (0) 20 3137 1902 |
Cenkos Securities Plc (Joint Broker) | |
| +44 (0) 20 7397 8900 +44 (0) 131 220 6939 |
Murray (PR Advisor) | +353 (0) 87 6909735 |
| |
Camarco (Financial PR/IR) | |
| +44 (0) 20 3757 4983 |
Notes to Editors
Led by an experienced management team with a strong track record of growing full cycle businesses and partnered with established industry players, the Company is well positioned to deliver future growth through portfolio optimisation and targeted acquisitions.
Qualified Person's Statement
Note: All references to flow rates set out above are gross unless otherwise stated
Glossary:
boe means Barrels of oil equivalent
bopd means barrels of oil per day
boepd means barrels of oil equivalent per day
bbl, bbls means barrel, barrels
bbl/d means barrels per day
M means thousand
MM means million
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