United Oil & Gas PLC (AIM:UOG, FRA:1UO) told investors that its 22% owned ASX-1X exploration well in the Abu Sennan licence, onshore Egypt, has encountered at least 10 metres of net oil pay across multiple oil-bearing reservoirs.
The well will now be completed and tested, and subject to a successful test, will subsequently be brought online for production.
"Today's announcement is the fourth positive well result from Abu Sennan in 2021,” said chief executive Brian Larkin. “With the well testing set to begin shortly, we look forward to understanding the full potential of the ASX-1X well.
“This is the second exploration well drilled in 2021 on Abu Sennan and gives us further confidence in the value of the remaining exploration potential of the licence. We are also pleased to be planning the drilling campaign for next year and beyond.”
United noted that talks took place recently between partners to discuss the 2022 campaign which is set it include a combination of development wells to maintain production and exploration wells to tap into large reserve and production upside.
“Plans are continuing to progress on finalising the additional development well that has been added to the 2021 drilling programme,” Larkin added.
“The continued investment in Abu Sennan by the JV partners is testament to the potential which exists within the licence, and we look forward to updating shareholders as we receive further results from the continuing 2021 campaign."
United owns a 22% interest in Abu Sennan which is operated by Kuwait Energy.