United Oil & Gas says Egypt well tests exceed expectations

London-listed United Oil & Gas provided an update on the El Salmiyah-5 well, which is in the Abu Sennan concession in Egypt, with tests exceeding pre-drill estimates.

In a statement, UOG said that early analysis of logging and testing suggests that the well significantly exceeds pre - drill estimates, further building on the success of the last 12 months which has seen UOG's share of production increase significantly.

El Salmiyah-5 was spudded on 3 February 2020, and reached total depth of 4,400m MD on 17 April 2020. After logging, testing, and completion, the rig was released on 21 May 2020.

Brian Larkin CEO, United Oil & Gas: "As a development well into a known field, the El Salmiyah-5 well was always expected to encounter hydrocarbons. However, with a headline figure of c. 8,700 boepd achieved on test from the primary target in the Kharita, it is fair to say the results have significantly exceeded our pre-drill expectations."

UOG said that net pay was encountered in all of the targeted intervals, totalling in excess of 120m for the Well and exceeding pre-drill expectations significantly. This was further supported by the encouraging well-test results, which achieved flow rates of 4,100 bopd, with a further 18 mmscf/d gas.

Larkin added: "The Well result is a further realisation of the value we identified in the licence, and is likely to lead to our net production levels from the licence rising to over 2,500 boepd in the coming weeks -  a significant increase from January 2019, the effective date of the purchase of the asset. Importantly, with operating costs of around $6.5/bbl, this production is highly profitable at today's oil prices."