United Oil reports commercial net pay in latest Abu Sennan well

United Oil & Gas updated the market on the drilling of the Al Jahraa-13 development well in the Abu Sennan licence, onshore Egypt on Wednesday.

The AIM-traded firm said the well encountered 17.5 metres of net pay in the oil-bearing Upper and Lower Bahariya reservoir targets, and reached total depth several days ahead of schedule and under budget.

It said the discovery of commercial net pay in AJ-13 made it the seventh successful well in a row at Abu Sennan since United acquired its interest in the licence.

The well would be tested and completed in the coming days, and would then be brought immediately onstream through the existing Al Jahraa facilities, adding additional production and revenue for the company.

United said the AJ-13 well was the fifth and final well in the Abu Sennan 2021 drilling programme, before the start of the 2022 programme.

The company holds a 22% working interest in the licence, which is operated by Kuwait Energy Egypt.

“We have had outstanding results with our drilling campaign in 2021 with five out of five successful wells drilled at Abu Sennan this year,” said chief executive officer Brian Larkin.

“All of the wells have been brought into production quickly, generating cash flow for the company.

“The 2021 drilling campaign has further de-risked the exploration potential at Abu Sennan and the development wells have provided further valuable data for future exploration drill targets two of which are included in the 2022 programme; ASF-1X and AST-1X.”

At 1134 GMT, shares in United Oil & Gas were up 23.56% at 2.78p.