United Oil & Gas provides the following update on the drilling of the ASH-3 well in the Abu Sennan concession, onshore Egypt. United holds a 22% non-operating interest in Abu Sennan, which is operated by Kuwait Energy Egypt.

Highlights

Total of 27.5m net pay interpreted over a 59m gross section in the targeted Alem El Buieb (AEB) reservoir
Initial testing will be completed in the coming days before the well is then brought onstream through the existing ASH Field facilities

ASH-3 Well

The ASH-3 development well, which spudded on the 4th January, reached TD of 4,087m MD (3,918m TVDSS) on 8th February, 5 days ahead of schedule and under budget. The well, which has been drilled as a step-out development well in the ASH Field, has been logged and interpreted to have a 59m gross hydrocarbon column in the primary AEB reservoir target, 27.5m of which is estimated to be net pay.

The well will be tested and completed in the coming days and will then be brought immediately onstream through the existing ASH facilities, delivering a further uplift to production. The ED-50 rig will then move to the north of the Licence, close to the producing Al Jahraa field to commence the drilling of the ASD-1X exploration well. This well is targeting the Abu Roash reservoirs in the 4-way dip-closed Prospect D structure and, if successful, can quickly be brought into production.

United Chief Executive Officer, Brian Larkin commented:
"We are very encouraged with the initial results of the ASH 3 well and we are delighted that it has been delivered safely, ahead of schedule and under budget by our licence partners.  We anticipate the well will deliver a further uplift to our low cost production base, an encouraging result ahead of the spudding of our forthcoming exploration well and the remainder of our 2021 work, all of which is fully funded from operating cash flow.

"To date the ASH Field has produced close to 2 million barrels of oil, with current production rates at over 5,000 boepd, and we believe significant further potential exists within the licence."

KeyFacts Energy: United Oil and Gas Egypt country profile