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United Oil & Gas spuds ASD-1X exploration well

Published: 07:58 08 Mar 2021 GMT

United Oil & Gas PLC - United Oil & Gas spuds ASD-1X exploration well

United Oil & Gas PLC (LON:UOG) has spudded the ASD-1X exploration well in the Abu Sennan Licence in Egypt.

The ASD-1X well will test a number of stacked reservoir targets, primarily Abu Roash ‘C’ and ‘E’ whilst the ‘G’ reservoir is marked as a secondary target. The well is located to the north-east of the producing Al Jahraa Field.

This is the second well in the 2021 campaign and follows ASH-3 which in February impressed with expectation-beating results.

READ: ASH-3 impresses in testing

The well programme is expected to last for around 60 days. United’s participation in the well is funded entirely through operational cash flow, the company said.

A third well has now been added to the drill campaign, as the joint venture partners have agreed to schedule the AJ-8 development following ASD-1X.

AJ-8 was previously on the slate for 2020 but was put on-hold amidst the market volatility that followed the onset of the COVID-19 pandemic. The well will target the Abu Roash and Bahariya reservoirs in an undrained area of the Al Jahraa Field.

"There is considerable exploration potential in the Abu Sennan licence, and it is great to be actively drilling wells to unlock that potential,” said Brian Larkin, chief executive.

“We are delighted that the ASD-1X exploration well has been spudded and look forward to updating shareholders once the well has reached the target reservoirs.”

"The improving oil price environment of recent months has significantly enhanced operational cashflows and improved the economics of additional development wells so it is also very pleasing to have confirmation of the drilling of the AJ-8 development well immediately after completion of ASD-1X."

United owns a 22% interest in the Abu Sennan licence which is host to a number of oil and gas fields.

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