Company
LON:UOG
United Oil & Gas is a full-cycle oil and gas company with a portfolio of low-risk, cash generative production, development, appraisal and exploration assets across Egypt, UK and a high impact exploration licence in Jamaica. The business is led by an experienced management team with a strong track record of growing full cycle businesses, partnered with established industry players and is well positioned to deliver future growth through portfolio optimisation and targeted acquisitions.
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Experts are currently working on mitigating the impact of changes to the oil to water ratio seen since early July. The impact has been felt on the ASH field only and on the ASH-2 well in particular
The well will test multiple stacked targets, similar to the successful ASD-1X well
The stockbroker has a 'buy' recommendation that sees around 80% upside to the current price.
The firm's latest well results beat pre-drill expectations.
"The AJ-8 well was expected to flow at good rates, but it is great to have our expectations exceeded with these encouraging initial test rates," said chief executive Brian Larkin
"With this transaction we continue to demonstrate our ability to actively manage our portfolio of assets to unlock significant return in value for our shareholders in a short period of time,” said Brian Larkin
"The outlook for the business remains encouraging and we remain well positioned for further success," said Brian Larkin
The share trades at a significant discount to Cenkos' valuation, even before the company's latest well success in Egypt.
"We are delighted to be able to announce yet another positive result from the Abu Sennan licence,” said chief executive Brian Larkin.
The broker's core and exploration valuation suggest significant upside to the current market price for United Oil & Gas.
The well adds 285 bopd net to United, meanwhile, a workover of another Egyptian well has added a further 220 bopd.
It was another active week in the small cap oil and gas sector.
United marked a new discovery this week as well results beat expectations.
"Today's announcement is yet another positive result from Abu Sennan,” said Brian Larkin.
UOG has emerged as a low-cost producer poised for significant growth this year,” SP Angel analyst Sam Wahab said.
The company highlights significant achievements despite it being one of the toughest years for the sector.
It was an active week in the small-cap oil and gas sector.
Upside comes from both a further c3.9mmboe of 3P reserves and 21 exploration prospects
"The numbers reported today will have exceeded many expectations in our view,” said SP Angel analyst Sam Wahab
"It is really pleasing to see the Abu Sennan assets continuing to perform so strongly, and so consistently," said Brian Larkin.
