United Oil & Gas PLC (AIM:UOG) shares gained just over 30% in Tuesday’s early deals after a project update out of Egypt revealed that drilling has begun at its next well and as production data from its most recent additional confirmed a continuing strong performance.
The company, in a statement, reported a first-quarter ‘exit’ rate of 2,720 barrels oil equivalent per day (versus an average rate over the quarter of 841 bopd) with the ASH-8 well said to be making “the material contribution".
Drilling is meanwhile underway on the ASD-3 development well which is expected to be drilled down to 3,649 metres and take 55 days to complete.
"We are happy to report that the next well in our 2023 drilling campaign has spud at ASD-3, in an area of the field we believe contains extensive unrecovered resources,” said chief executive Brian Larkin.
“We are excited by the potential that this well is planned to test and the follow-on development drilling targets it could unlock in a success case.
“It is also really pleasing to see the continued strong production performance from the ASH-8 well, which supports our view that there is significant long term value remaining in the Abu Sennan licence."
In London, United shares were up 0.37p or 30.83% changing hands at 1.57p, which values the company at just under £10mln.