United Oil & Gas expects production growth as Egyptian success continues

United Oil & Gas Plc (UOG) describes itself as a rapidly-growing full-cycle AIM-listed oil and gas company with the energy and capability to build on its track record of delivery.

The company is focused on low-risk production and development projects in Egypt, Italy, and the UK, and high-impact exploration in Jamaica.

In early 2020, the company acquired a 22% non-operating interest in the Abu Sennan asset. Located in the prolific hydrocarbon-producing Western Desert region of onshore Egypt, it comprises 7 development concessions.

() said production averaged 2,022 barrels oil equivalent per day through the third quarter.

The Q3 production comprised 1,619 barrels of oil and 405 boepd of gas, the company noted.

Over the first nine months of 2021 production averaged 2,491 boepd, comprising 2,023 bopd and 468 boepd of gas.

United said it expects full-year production in the range of 2,100 and 2,3000 boepd, in line with prior guidance.

United Oil & Gas PLC (AIM:UOG, FRA:1UO) says it is well placed to capitalise on new opportunities emerging across the industry, supported by its producing assets in Egypt.

Working interest production averaged 2,739 barrels oil equivalent per day in the first half of 2021, the company said in its interim results statement. This compared with 1,975 boepd during the comparative period of 2020, boosted by a continuation of successful wells at the 22% owned Abu Sennan permit.

United Oil & Gas PLC (AIM:UOG, FRA:1UO) told investors that its 22% owned ASX-1X exploration well in the Abu Sennan licence, onshore Egypt, has encountered at least 10 metres of net oil pay across multiple oil-bearing reservoirs.

The well will now be completed and tested, and subject to a successful test, will subsequently be brought online for production.

Analysts at Optiva Securities say they are confident United Oil & Gas (LON:UOG) and its partners will be able to “mitigate” water-cut issues that have led to production declines at the ASH field onshore Egypt.

Calling the news “disappointing”, the broker’s oil team “tempered” its price target to 6.7p a share from 7.3p. That said, the valuation is still more than double the company’s share current share price.

“We remain confident that remedial action on ASH will serve to mitigate excessive production declines from the field and we highlight that our tempered assessment of United’s Egyptian assets still represents a significant uplift on the current share price,” Optiva said in a short note.

United Oil & Gas PLC (AIM:UOG, FRA:1UO)’s (LON:UOG) Brian Larkin talks to Proactive London’s Katie Pilbeam to discuss capitalizing on their ‘fantastic first six months of the year’ drilling three successful wells.

Working interest production averaged 2,730 barrels oil equivalent per day in the first half of 2021, this compared with 1,975 boepd during the comparative period of 2020, boosted by a continuation of successful wells at the 22% owned Abu Sennan permit.

Larkin highlights the three successful wells drilled on Abu Sennan and the company reached record working interest production of 2,730 boepd, delivering strong operational cashflow.