United Oil & Gas PLC (AIM:UOG, FRA:1UO) says it is well placed to capitalise on new opportunities emerging across the industry, supported by its producing assets in Egypt.
Working interest production averaged 2,739 barrels oil equivalent per day in the first half of 2021, the company said in its interim results statement. This compared with 1,975 boepd during the comparative period of 2020, boosted by a continuation of successful wells at the 22% owned Abu Sennan permit.
"During the first half of 2021 three successful wells were drilled on Abu Sennan and the company reached record working interest production of 2,730 boepd, delivering strong operational cashflow," said chief executive Brian Larkin.
"As part of the long-term objective to realise the full potential of Abu Sennan, we are pleased to be planning the drilling programme with our partners for 2022 and beyond. This plan will include multiple development and exploration wells and has the potential to deliver large reserve and production upside."
Larkin added: “During the period, the company has completed a portfolio review, refocusing United around its low risk, high return production business, complemented by selected high impact exploration opportunities."
The ASD-1X well came online in May, with an initial gross production rate of 1,200 boepd and produced around 600 boepd in the second quarter. The AJ-8 well has come online later to add an initial 950 boepd and the ASX-1X exploration hit pay and further testing will follow.
United told investors it expects Abu Senna will provide it with full year production in the range of 2,100 to 2,300 boepd.
In terms of financial performance, United reported US$10.2mln of group revenue up from US$2.4mln a year ago driven by higher production volumes and better prices. Realised oil prices were reported at US$63.10 per barrel for the period, versus US$28.26.
Gross profit jumped to US$5.7mln, from US$300,000, and profit after tax amounted to US$2mln compared to US$1.8mln. The company made US$2.4mln of repayments on its pre-payment facility with BP. It ended June with US$2mln of cash.