United Oil & Gas PLC shares advance as ASH-3 well results impress
“The ASH Field continues to out-perform our estimates and following on from the success of the 2020 drilling programme,” said chief executive Brian Larkin.
() shares advanced in Tuesday’s dealing after preliminary test results from the ASH-3 development well, at the Abu Sennan project, beat expectations.
The ASH-3 well showed a maximum rate of 7,720 barrels oil equivalent per day, comprising 6,379 barrels of oil per day and 6.7mln cubic feet per day, from the Alam El Bueib (“AEB”) reservoir during well-testing.
On a choke reduced to conditions that are representative of production, the well yielded a rate of 4,140 boepd – 3,561 bopd and 2.9mln cubic feet of gas.
READ: United sees production rising in 2021
United said it expects the well will be brought onstream in the coming days.
“The ASH Field continues to out-perform our estimates and following on from the success of the 2020 drilling programme, this is another excellent drilling result that demonstrates its significant growth potential,” said Brian Larkin, chief executive.
“This result is a very positive development for the Abu Sennan partnership as a whole, and, when brought on production over the coming days, ASH-3 will provide a significant boost to the concession-wide production rates that averaged 10,500 boepd gross (2,310 boepd net) during January 2021.”
“We look forward to the spudding of the forthcoming exploration well and the remainder of our 2021 work program.”
In London, United shares rose by 7.25% changing hands at 3.74p.
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