United Oil & Gas PLC (AIM:UOG) shares jumped as much as 10% in Tuesday’s early deals after reporting the start of production from the ASH-8 development well at the Abu Sennan licence onshore Egypt.
The well came online at a stabilised rate of 2,980 barrels of oil per day along with 2.64mln cubic feet of gas per day.
AIM-quoted United has a 22% minority stake in Abu Sennan, which sees its net share equate to around 656 barrels of oil and 580,000 cubic feet of gas based on the initial reported rates.
United highlighted that production from ASH-8 started six weeks ahead of its anticipated schedule and is at a higher rate than originally forecast. As a result, the firm said it now expects first-half production to be at the higher end of its guidance, which is pitched at 700 to 900 barrels of oil per day.
"We are very happy with the results from the ASH-8 well,” chief executive Brian Larkin said in a statement.
In London, United shares jumped more than 10% higher reaching 1.47p in early deals before settling at 1.21p, up 5.31%.