United Oil & Gas PLC (AIM:UOG) told investors that production has begun from the ASX-1X well in the Abu Sennan licence, onshore Egypt.
It follows exploration success and the declaration of ASX-1X as a new discovery, with the project operator sufficiently confident to move straight to production after the initial well result. It is the second exploration well of the current programme to be delivered straight to production.
The initial production rate was marked at around 870 barrels of oil per day gross.
"The commercial discovery at ASX-1X well and the fast track to production will enhance revenue and further increase the proven reserves on the licence,” said United chief executive Brian Larkin.
“Another new discovery is a further positive sign for the remaining exploration potential within licence, and we will continue to work with our joint venture partners to prioritise these opportunities which can be brought into production in short time frames.”
Larkin added: “With the excellent record of exploration and development drilling success we have had on Abu Sennan to date, we are very excited about the four well drilling campaign next year and beyond, and the potential that the licence offers for years to come."
Next on the slate will be the spudding of the Al Jahraa 13 development well, due in the coming weeks. It will be the fifth well in the 2021 drill programme.
Al Jahraa 13 will be drilled by the ECDC-6 rig which is expected to be mobilised shortly.