News In Brief
The Company has disclosed that the ENSCO-72 jack-up rig has spudded the Colter appraisal well, aimed at testing the 23mm bbl (gross 2C) appraisal prospect, which given its proximity to the shoreline, could be developed utilising an onshore location. This well will not test the 27mm boe Colter South exploration prospect.
We estimate that Colter contributes $4.6mm (0.26p) to the Company's overall NPV valuation (discounted at 10%), which if successful, could increase to $12.1mm (0.69p). Our overall valuation is unaffected by today's news, which remains at $14mm (0.79p).
United Oil & Gas
Maiden CPR for Selva
The company has disclosed that it has published the maiden CPR for its Selva gas field in the Podere Gallina Licence in northern Italy. The report details the net 2.7bcf of 2P reserves, which given the Italian fiscal system will make a bigger than would otherwise be expected contribution to the Company's cash flow. The only issue is that this is Italy and given the bureaucratic nightmare that is the approvals system, the company's estimate of 2020 for first gas is achievable, if optimistic.
Regardless of the final timing of the first gas, and we believe that it could also be as late as 2022, the Company's owners should be pleased with the fact that the company has identified an opportunity and quickly brought it into production.
We may provide a further update on one, or all, of the stories above later today. However, if there is anything that you would like to discuss, please feel free to contact us.