Page 15 - AfrOil Week 14 2021

AfrOil NEWS IN BRIEF AfrOil

UPSTREAM the Al Jahraa field. significantly more water than the other wells,
United’s CEO Brian Larkin commented: and above what might be expected as water of
United Oil & Gas announces “Today’s announcement is another positive condensation. Analysis of this water suggests it
is significantly fresher than formation water and
result from Abu Sennan, which, initial inter-
discovery at ASD-1X well pretations suggest, is in line with our pre-drill thus likely composed of drilling and comple-
estimates. With the well testing set to begin tions fluid lost from the drilling (which started
United Oil & Gas has provided an update on the shortly, we look forward to understanding the in 2016), through to the attempted remedia-
drilling of the ASD-1X exploration well in the full potential of the ASD-1X well. A number of tion in 2019 and then successful remediation in
Abu Sennan concession, onshore Egypt. United additional targets and leads have been identi- 2020. The water-gas-ratio stabilised at around
holds a 22% working interest in the Licence, fied within the Abu Sennan concession and the 50 barrels/mcf, and has fallen below this in the
which is operated by Kuwait Energy Egypt. results of ASD-1X and other recent wells will last week. This level of water production (up to
Highlights: Preliminary results suggest the better inform our understanding of the acreage. 200 bpd) is being managed well by the opera-
ASD-1X exploration well encountered a total We will continue to work with our JV partners tions team. We propose to produce a larger vol-
of at least 22m net oil pay interpreted across a to prioritise these opportunities which can ulti- ume from the well and then carry out a pressure
number of reservoirs, including the Abu Roash mately be brought into production in short time build-up test.
C (AR-C), Abu Roash E (AR-E), Lower Bahariya frames. With the EDC-50 rig moving to drill the Matanda: Well planning, procurement of
and Kharita Formations. AJ-8 development well after the completion of long lead items and rig selection are underway,
Well-testing is now planned, and if successful, ASD-1X, we look forward to providing further and the farmout process has been started with
will be followed by an application to Egyptian updates on the continuing 2021 Abu Sennan several parties registering interest. The Environ-
General Petroleum Corp. (EGPC) for a devel- drilling campaign.” mental and Social Impact Assessment (ESIA)
opment lease over this new discovery. United Oil & Gas, April 06 2021 has been delivered for the Ministry’s consider-
The ASD-1X exploration well, located 12km ation. Follow up meetings have been held with
to the north-east of the producing Al Jahraa Victoria Oil & Gas issues the Ministry of Environment to plan the second
Field, safely reached Total Depth (TD) of 3,750 phase of public hearings which form part of the
metres MD on 30 March, several days ahead of operational update ESIA process.
schedule and under-budget. New Age Letter of Intent (LoI): The LoI with
Preliminary results suggest the well encoun- Victoria Oil & Gas, the Cameroon-based gas New Age, which was originally announced on
tered a combined net pay total of at least 22m and condensate producer and distributor, has February 5, 2020, expired on March 31, 2021.
across a number of reservoir intervals, includ- provided a general corporate and operational In consultation with SNH, GDC and New Age
ing the primary reservoir targets of the AR-C update on key matters. agreed to let the LoI lapse and expedite dis-
and AR-E, as well as the Lower Bahariya and Cameroon Operations” Recent weekday pro- cussions with SNH on the way forward on the
Kharita Formations. Completion of the well and duction has been 5.5-6.0 mcf per day gross gas, project in line with the Gas Code of Cameroon
well-testing of these reservoirs is planned in the but with the usual daily and weekly fluctuations, and the Country’s Gas Master Plan. As part of
coming weeks, and if successful, will lead to an with one customer returning having paid off the process, GDC has offered to off-take up to 25
application to EGPC being made for a develop- aged debt, and one customer increasing its con- mcf per day from Etinde, subject to a number of
ment lease over this new discovery. sumption for both power and thermal. conditions. The whole project still remains con-
The well was drilled by the EDC-50 rig, Early La-108 Performance. Well La-108 was ditional upon securing Final Investment Deci-
which, after completion, will move to the Al Jah- brought online on February 15. The well was sion (FID) on the upstream project and award of
raa Field within the Abu Sennan concession to initially producing on its own and more recently an Independent Power Producer licence among
commence the drilling of the AJ-8 development in combination with another well to ensure that other things. Recent public statements suggest
well. This well will target the Abu Roash and operations could be managed given contrasting that the Etinde partners are now likely to secure
Bahariya reservoirs in an undrained portion of wellhead pressures. The well started producing FID in 2022, before which they will need to
renew their Exclusive Exploitation Agreement
(EEA) and seek approval for a revised develop-
ment plan.
RSM Litigation. An ICC Arbitration panel
will hear the substantive matters raised by RSM
(GDC’s joint venture partner in the Logbaba
field), and GDC’s counterclaims, in the third
week of April (rescheduled from January). The
UNCITRAL arbitration will be heard in London
under Cameroon Law and is scheduled for hear-
ing at the end of September 2021. Arbitrations
under ICC and UNCITRAL rules are confiden-
tial processes and the Company is not permitted
to provide detailed comments on them, beyond
saying that the amounts of claims and counter-
claims are material to the Company and that it
continues to vigorously defend the claims raised
by RSM. Our expectation is that each panel
would take several months to deliberate and
issue their rulings.

Week 14 07•April•2021 www. NEWSBASE .com P15