United Oil and Gas PLC (LON:UOG) shares advanced after it raised £1.25mln and updated on the Podere Maiar 1 well at the Selva gas field in the Podere Gallina licence.
The Podere Maiar 1 well, located in Northern Italy, has been cased and completed with perforations totalling 11 metres across two gas intervals (C1 and C2). The well is now ready for production.
In-line with pre-drill expectations
Analysis of well results indicates that the well has delineated the two reservoirs, which have combined gross interval of 62 metres and 41 metres of net pay.
“We are very pleased with the net pay result of 41m of gas, which is in line with our pre-drill expectations,” said Brian Larkin, UOG chief executive.
Rig mobilisation is underway and flow-testing is scheduled for January.
In a separate statement, the company announced it has raised £1.25mln though a placing of 31.25mln priced at 4p each (Tuesday’s closing price: 4.25p).
"We are extremely pleased to have completed this placing before the year end,” Larkin said.
“The proceeds of this placing will be used to advance potential near-term acquisitions and farm-in opportunities and also ensures that our company has a solid cash platform to move our company forward in 2018.”
Continuing momentum through 2018
He added: “This year has seen our company make significant developments; we added two more exciting licences to our portfolio, listed on the London Stock Exchange, completed two placings, enjoyed success in our first drilling campaign and delivered significant value for shareholders.
“We intend on continuing this momentum through 2018 and we look forward to updating shareholders."
United Oil & Gas shares rose 8.7% to trade at 4.62p.