Stockbroker cheers United Oil & Gas run of success in Egypt

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United Oil & Gas PLC has continued its run of success at the Abu Sennan licence, in Egypt, stockbroker SP Angel highlighted.


On Monday, United released results from the Al Jahraa-8 (AJ-8) well from which pre liminary short-term tests yielded a maximum rate of 2,819 boepd, comprising 2,093 bopd and 3.63mln cubic feet of gas per day, and a rate of 1,433 boepd on a more constrained choke.


The results exceed the company’s pre-drill expectations for the well. And it will now be brought onto production in the coming days.


SP Angel, in a note, emphasised the positives of the result.


“With over 40m of net pay previously reported, the AJ-8 well was expected to flow at good rates, however shareholders will be encouraged with initial test rates recorded from the Lower Bahariya in our view,” said SP Angel analyst Sam Wahab.


United owns a 22% interest in the Abu Sennan licence which is operated by Kuwait Energy.


“We will now work with our partners to bring the well on stream in the coming days, at a rate which will maximise the long-term production and contribute to our low cost production base.”


The drill rig will shortly now move some 7 kilometres north to drill the ASX-1X well on the Al Jahraa Field. Drilling is expected to start in the coming days.

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