United Oil & Gas confident as Egypt reserves rise by 24%
United Oil & Gas Plc (LON:UOG) has unveiled a significant upgrade to its independently assessed oil and gas reserves at the Abu Sennan concession, onshore Egypt.
According to a report by consultant Gaffney, Cline & Associates the concession’s proved and probable (2P) reserves rose by 24% to 16.8mln barrels, from 13.5mln in early 2020, and gross proved (1P) reserves expanded by 59% to 6.7mln.
The company highlighted significant additional growth opportunities with the consultant’s report pointing to some 21 exploration targets in the portfolio.
The largest of these is estimated to contain 5mln barrels and is seen to have a 35% chance of success.
“It is really pleasing to see the Abu Sennan assets continuing to perform so strongly, and so consistently, with a reserves replacement ratio of over 190% for the second year in a row,” said Brian Larkin, United chief executive.
“We remain confident that the licence has much more to offer, and indeed, these upgraded reserve numbers take no account of the successes already achieved so far during the 2021 drilling campaign.”
Larkin added: “This report significantly increases our understanding of the potential of this asset, pointing to 21 potential exploration targets.
“With further development drilling due to commence shortly at Al Jahraa, and further development and exploration targets identified across the licence, we are looking forward to further news flow and growth from Abu Sennan, both in the coming months and in the longer-term.”
United owns a non-operated 22% interest in Abu Sennan.