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UPSTREAM
United Oil & Gas reports

successful testing
of Al Jahraa-8 well

AIM-listed United Oil & Gas has provided an
update on the testing of the Al Jahraa-8 (AJ-8)
development well in the Abu Sennan conces-
sion, onshore Egypt. United holds a 22% work-
ing interest in the Licence, which is operated by
Kuwait Energy Egypt.
Highlights from AJ-8 Well-testing: Prelim-
inary short-term test results from the Lower
Bahariya reservoir indicate a maximum flow
rate of 2,093 bpd and 3.63 mcf per day (circa
2,819 boepd gross; 620 boepd net) on a 64/64-
inch choke; a rate of 1,189 bpd and 1.22 mcf per
day (circa 1,433 boepd gross; 315 boepd net) on
a more constrained 26/64-inch choke; headline
test results exceed United’s internal pre-drill Preliminary testing of the Lower Bahariya res- first quarter of 2021 was mainly due to a planned
expectations. ervoir was carried out over a 17-hour period on maintenance shutdown.
The well will be brought onto production a number of different choke sizes. Preliminary BW Energy completed two liftings in the
from the Lower Bahriya reservoir in the coming results indicate a maximum flow rate of 2,093 quarter and realised an average price of $69.8
days. The EDC-50 rig will now move 7km to the bpd and 3.63 mcf per day (circa 2,819 boepd per barrel. Production cost (excluding royalties)
north of the Al Jahraa Field, where drilling of the gross; 620 boepd net) on a 64/64-inch choke, and was approximately $31 per barrel. The increase
ASX-1X exploration well is due to commence in a rate of 1,189 bpd and 1.22 mcf per day (circa in production cost per barrel has been impacted
the coming days. 1,433 boepd gross; 315 boepd net) on a more by the lower quarterly production. The overall
United’s CEO Brian Larkin commented: “We constrained 26/64-inch choke. production cost includes approximately $1.5mn
are delighted to announce further positive news The well will now be completed and brought of costs related to the continued handling of the
from the AJ-8 development well; continuing our onstream from the Lower Bahariya reservoir. COVID-19 pandemic through the period.
run of success on the Abu Sennan licence. With The hydrocarbon-bearing zones that were BW Energy’s share of gross production was
over 40 metres of net pay previously reported, encountered in the Upper Bahariya and AR-E approximately 700,000 barrels of oil. Net sold
the AJ-8 well was expected to flow at good rates, will be tested and brought onstream at a later volume, which is the basis for revenue recogni-
but it is great to have our expectations exceeded date. tion in the financial statement, was 1.14mn bar-
with these encouraging initial test rates recorded After completing the AJ-8 well, the EDC-50 rels, including approximately 97,000 barrels of
from the Lower Bahariya. rig will move circa 7 km to the north of the Al quarterly Domestic Market Obligation (DMO)
“We will now work with our partners to bring Jahraa field to drill the ASX-1X exploration well, deliveries, resulting in an over-lift position of
the well on stream in the coming days, at a rate which is expected to spud in the coming days. around 300,000 barrels at the end of the period.
which will maximise the long-term production This is expected to be the final well of the 2021 BW Energy had a cash balance of $216mn at
and contribute to our low-cost production base. campaign, with longer-term plans for unlocking June 30, 2021, compared to $185mn at March
We will move ahead to spud the ASX-1X explo- the additional potential that exists in the Abu 31, 2021. The increase is mainly due to a strong
ration well, the next step in our plans to further Sennan licence currently under discussion. operating cash flow reflecting a higher realised
realise the value of this exceptional licence.” United Oil & Gas, August 2 2021 oil price. The company is well capitalised for the
Al Jahraa-8 Well Detail: The AJ-8 well com- upcoming investment activities with a robust
menced drilling on May 2, targeting the Abu BW Energy announces balance sheet and no external debt.
Roash and Bahariya reservoirs in an undrained At the Tortue field, the drilling of the final
portion of the Al Jahraa field. The original hole Q2-2021 trading update horizontal production well, DTM-7H, was
was sidetracked after encountering poor hole successfully completed according to plan.
conditions in the highly deviated well. BW Energy has provided an update on the oper- High-quality oil-bearing sands were encoun-
Preliminary interpretations indicate the side- ation and development of the Dussafu Marin tered in line with prognosis. The work will now
track encountered net pay in the AR-E and over license in Gabon. The Company will publish its proceed with the completion and tie-in of the
30 metres of net pay across the Upper Bahariya financial report for the first half of 2021 on Fri- two wells (DTM-6H and DTM-7H) with first
and Lower Bahariya Upper reservoirs. Due to day, August 20. oil expected in early Q4-2021.
hole conditions in the sidetrack, a decision was Gross production from the Tortue field aver- The Hibiscus North exploration well
made to run liner at 4,314 metres MD and TD aged approximately 10,500 barrels of oil per day (DHBNM-1) was spudded earlier this week and
the well without reaching the Lower Bahariya in the second quarter of 2021, amounting to a drilling activities are progressing as planned. The
Lower reservoir that had been a pre-drill target. total gross production of 950,000 barrels of oil well has a geological analogue to the Ruche Field,
The AJ-8 well has now been successfully for the period. where the Gamba structure is the primary target.
tested from the Lower Bahariya reservoir. The decrease in production compared to the BW Energy, July 28 2021

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