Page 15 - AfrOil Week 29 2021

AfrOil NEWS IN BRIEF AfrOil

UPSTREAM United’s Chief Executive Officer Brian Lar- rigless testing and preparations for an appraisal
kin commented: “We are delighted to be able to well. MOU-1 establishes a basis for commercial
United Oil & Gas announces announce yet another positive result from the joint venture discussions with gas off-takers in
Abu Sennan licence. This latest success from the the Moroccan industrial sector.
successful Al Jahraa-8 AJ-8 development well will not only provide an Predator Oil & Gas, the Jersey-based Oil
uplift to our low-cost production base but also and Gas Company with operations in Trinidad,
development well demonstrates the deeper potential that exists Morocco and Ireland has announced that it has
within the Bahariya Formation targets. Encoun-
conditionally placed 26mn new ordinary shares
AIM-listed United Oil & Gas has provided an tering over 30 metres of net pay in the Bahariya of no par value in the Company at a placing
update on the drilling of the Al Jahraa-8 (AJ-8) Formations is significantly above our pre-drill price of 5 pence each to raise GBP1.3mn before
development well in the Abu Sennan conces- expectations and will likely be targeted further expenses.
sion, onshore Egypt. United holds a 22% work- in subsequent drilling campaigns. The Placing was significantly oversubscribed
ing interest in the Licence, which is operated by “The JV partners have discussed the upside and utilises the Company’s existing headroom
Kuwait Energy Egypt. potential on the Abu Sennan licence, both from shares under the Financial Conduct Authority
Highlights from AJ-8 Well: Initial interpreta- the existing fields and the identified exploration restrictions for companies on the Official List
tions indicate a total of over 40 metres MD of net targets, and it is great to have an additional explo- (standard listing segment) of the London Stock
oil pay encountered cumulatively across three ration well added to the 2021 drilling schedule, Exchange’s main market for listed securities.
different reservoir units in a sidetrack (AJ-8ST1), funded from operating cashflow, showing Novum Securities are acting as sole placing
after the initial hole was plugged back due to sta- the willingness of the JV partners to invest in agents to the Company.
bility issues. Preliminary results indicate over unlocking that upside potential. Although this Use of Proceeds: The Company is intent on
30 metres of net pay in the Upper and Lower is expected to be the final well of the 2021 cam- rapidly building upon the safe and successful
Bahariya reservoirs, significantly above pre-drill paign, discussions are continuing with partners MOU-1 drilling campaign to further appraise,
expectations. on the longer-term plans for accessing the unre- in consultation with its partner, the large MOU-4
The Abu Roash E (AR-E) reservoir also alised value at Abu Sennan, and we look forward Target. The Company has an existing option to
appears to have encountered net pay, in line with to updating the markets on these plans in due use the Star Valley Rig 101 for the drilling of
pre-drill expectations. The well has now been course. MOU-4 during Q4-2021. Commercial discus-
secured with liner in place, and will be com- “Given the previously reported positive sions will be advanced with gas off-takers in
pleted and tested across the three pay intervals. results from the ASD-1X well, we look forward the industrial sector in Morocco to seek joint
The successful discovery of commercial net to drilling this similar-looking structure, and will venture partnerships to secure first rights for a
pay in AJ-8ST1 makes it the fifth successful well update the market as the drilling progresses.” future potential Gas Offtake Agreement. The
in a row at Abu Sennan since United acquired its United Oil & Gas, July 19 2021 work programme below will address these stra-
interest in the licence. tegic objectives.
Additional 2021 Exploration Well: Fol- Predator Oil and Gas Paul Griffiths, CEO of Predator Oil & Gas,
lowing the continued success and potential commented: “MOU-1 was safely and success-
demonstrated at Abu Sennan, an additional, announces operational fully drilled within the Company’s pre-drill
fully funded, exploration well (ASX-1X) has budget estimates and completed for proposed
now been added to the 2021 drilling schedule highlights from MOU-1 rigless testing after presentation of results to our
ASX-1X will be drilled 11 km to the west of partner. Our immediate priority is to incorpo-
the successful ASD-1X well, which discovered site in Morocco rate the positive results of the MOU-1 well into
22 metres of net oil pay, before being put into the evaluation of the MOU-4 Target to opti-
production approximately two months after Operational highlights: MOU-1 TGB-2 target mise the location for a step-out well. The recent
discovery. successfully penetrated at 1,229 metres TVD appointment of Lonny Baumgardner as Chief
The well will target multiple Abu Roash and MD. Gross section of 75 metres corresponds to Operating Officer following the completion of
Bahariya reservoirs and will also be drilled using pre-drill seismic “bright spot” with increased MOU-1 includes the portfolio to develop the
the EDC-50 rig following completion of oper- resistivity log response and formation gas show. Company’s ties with the Moroccan downstream
ations at the AJ-8 well. Longer-term plans for TGB-2 now interpreted as western distal limit gas sector, for which he is uniquely placed. Sig-
unlocking additional potential in Abu Sennan of the MOU-4 submarine fan (MOU-4 Target). nificant potential exists for joint venture partner-
licence are currently under discussion amongst Potential for structural/stratigraphic trap of up to ships with gas-off-takers as the requirement for
the Joint Venture Partnership. 60 square km. Proposed forward plans to include gas in Morocco becomes an increasing priority.

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