AIM-listed United Oil & Gas, the full-cycle oil and gas company with a portfolio of production, development, exploration and appraisal assets, has issued the following trading and operations update summarising recent operational activities, providing trading guidance in respect of the financial year to 31 December 2022, and initial guidance for 2023
This is in advance of the company's audited full year results which will be released in April. The information contained herein has not been audited and may be subject to further review and amendment.
United CEO, Brian Larkin, said, "Operationally 2022 was a very active year for the Company with an extensive work programme executed in Egypt, generating good operational cashflow despite mixed drill results. Over the three years that United has held Abu Sennan, the production base has generated material cashflows for the business. As the asset matures, it is transitioning to a phase in its development where operations are focused on maintaining and extending long term production rates to generate operational cashflows for many years to come. Egypt remains an integral part of our business providing operational cashflow which supports the wider asset portfolio of the Company and our strategy to grow through M&A."
For Egypt, Abu Sennan licence (22% working interest), full year 2022 production averaged 1,312 boepd net (1,137 bopd oil and 175 boepd gas), in line with revised production guidance of 1,300-1,325 boepd.
The 2022 work programme consisted of three development wells, two exploration wells and eight workovers. The drilling programme achieved mixed results, with production added from ASD-2 and ASH-4, but with disappointing results from the two exploration wells. Q4 2022 production averaged 942 boepd net (884 bopd oil and 58 boepd gas), reflecting the expected decline from the existing wells, a proportionally higher decline in the lower-value gas volumes, and the fact that a number of wells were shut in pending workovers to return production. A number of these workovers which were planned for late 2022 were delayed due to operational issues and are now expected to be completed in Q1 2023.