United Oil & Gas PLC (LON:UOG) can count another new discovery in Egypt after its partner Kuwait Energy submitted a notice of commercial discovery to the authorities.
It comes as testing of the ASD-1X exploration well confirmed positive results.
The well encountered the lower Bahariya and Abu Roash C (ARC) reservoirs, and, performed positively in short term testing. In the Lower Bahariya reservoir, the well flowed at a maximum rate of 2,187 barrels oil equivalent per day (boepd) meanwhile the ARC reservoir measured a maximum rate of 1,489 boepd.
United highlighted that the headline results exceed the company’s own internal expectations.
READ: United Oil & Gas says 2020 was a “landmark year”
The drill rig has been moved ready for the AJ-8 development well, meanwhile, at ASD-1X the project will be moved towards production.
"Today's announcement is yet another positive result from Abu Sennan,” said Brian Larkin, chief executive.
“It is very pleasing to see the application for a development lease being submitted.
“This will not only enhance production but will further increase the proven reserves on the licence.
"The new discovery at ASD-1X is also a positive sign for the remaining exploration potential within the Abu Sennan concession, and we will continue to work with our JV partners to prioritise these opportunities which can ultimately be brought into production in short time frames.”
In April, United unveiled a significant increase in reserves at Abu Sennan.
It came in a report by consultant Gaffney, Cline & Associates, the concession’s proved and probable (2P) reserves rose by 24% to 16.8mln barrels, from 13.5mln in early 2020, and gross proved (1P) reserves expanded 59% to 6.7mln.
The company highlighted significant additional growth opportunities with the consultant’s report pointing to some 21 exploration targets in the portfolio. The largest of these is estimated to contain 5mln barrels and is seen to have a 35% chance of success.
United owns a non-operated 22% interest in Abu Sennan.