United Oil & Gas PLC (AIM:UOG) has announced the spudding of the Al Jahraa-14 development well on the Abu Sennan licence, onshore Egypt.
Drilling is now underway for the AJ-14 well, which is targeting the Abu Roash C reservoir in the Al Jahraa field, along with the secondary Abu Roash G target. It is scheduled to take 60 days to drill and complete, and will be fully funded from operational cashflow.
AJ-14 is expected to be brought into production rapidly, adding to a production profile which aims to average some 1,500 to 1,650 barrels oil equivalent of per day for 2022.
“As we have shown, successful development wells can be brought into production within days via existing infrastructure, adding production and revenue to the company and with a typical well achieving payback within several months,” said United chief executive Brian Larkin.
“Egypt offers a low-cost operating environment, with attractive fiscal terms and continues to deliver positive operational cashflow to United."