United Oil & Gas PLC (AIM:UOG) doubled revenues and increased profits four-fold as higher oil prices fed through to its bottom line.
Production in the year to end-December 2021 rose 6% to 2,327 net barrels per day, but UOG’s realised oil price jumped 82% to almost US$69 per barrel with operating costs flat.
As a result, revenues jumped to US$19.2mln (2020: US$9.1mln) with profits after tax rising to US$4.1mln (2020:US$0.9mln).
Brian Larkin, chief executive, said: "United has delivered strong financial performance and excellent drilling success in 2021 with all five wells in the programme adding production and cash flow to the company.”
UOG’s production is now focused on Egypt where exploration and appraisal drilling at its 22%-owned Abu Senna concession returned a 100% success rate last year.
A five-well programme is planned for this year at Abu Sennan with the first hole of this campaign also hitting commercial oil.
Production from Egypt in the current year is forecast to be between 1,500-1,650 barrels a day net, with capital expenditure forecast at US$7.2mln to be met from its own facilities.
UOG generated cash of US$17.3mln during 2021.
Larkin added he hopes the higher oil price will also kickstart its activities elsewhere.
“In Jamaica, the combination of support from our stakeholders in the form of a licence extension and high oil price have re-invigorated the farm-out campaign while in the UK, we are excited about the commercialisation opportunities that the licence containing the Maria discovery offers.”