United Oil & shares fall as Abu Sennan drilling disappoints

(Alliance News) - United Oil & Gas PLC on Wednesday said drilling had failed to find hydrocarbons at the Abu Sennan licence.

The oil and gas company with exploration and appraisal assets in the Abu Sennan licence, onshore Egypt, announced it completed its drilling operations on the ASW-1X exploration well, drilling the well to a depth of 3,640 metres.

The company said although the well encountered net reservoir in the Abu Roash, Bahariya, and Alam El Bueib targets, the logs did not indicate that there were hydrocarbons present.

United Oil holds a 22% non-operating interest in the Abu Sennan licence - which is operated by Kuwait Energy Egypt. United oil said the results from the drilling operation will add to its understanding of the Abu Senna licence subsurface, and be used to prioritise future drilling locations.

Chief Executive Officer Brian Larkin said: "Although the results of the ASW-1X well are disappointing, the JV partners are positive about the remaining prospectivity on the licence and will continue to deliver the maximum value from it. We are looking forward to the 2023 drilling campaign, which will initially focus on further development of the asset by the drilling of ASH-8 followed by the ASD-3 well."

"These development wells are targeting the most prolific areas of the Abu Sennan licence, to maximise production before the drilling of at least one further exploration well in Abu Sennan later in the year," he said.

The ASW-1X well will be plugged and abandoned, and the Sino Tharwa-1 rig will be used to drill the ASH-8 development well, the first of the 2023 drilling campaign, the company said.

United Oil shares were down 20% trading at 1.02 pence per share on Wednesday morning in London.

By Harvey Dorset, Alliance News reporter

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