Page 15 - AfrOil Week 47 2022

AfrOil NEWS IN BRIEF AfrOil

INVESTMENT
UOG shares slump on

downgraded expectations
at Abu Sennan licence

Shares in United Oil & Gas tumbled 22.7% lower
in morning deals on Thursday (November 24)
after a sudden drop-off in a new well resulted in
downgraded expectations in Egypt, Proactive
Investors reports.
The AIM-listed company said in a statement
that production rates from the ASH-4 well, at the
Abu Sennan licence, onshore Egypt, which was
last week reported as producing around 1,685
barrels of oil equivalent per day (boepd) – 371
boepd net to UOG – had since declined sharply,
suggesting the well is connected to less oil than
previously expected.
“Although the initial production from the
ASH-4 development well has not performed
as we had expected, it is contributing over 150
barrels to net production today,” said UOG Bueib reservoir. But it maintained that 1,325 bpd subject to further review and amendment.
CEO Brian Larkin in a statement, “and the data and 1.8 mmcf (51,000 cubic metres) per day are John Hamilton, CEO of Panoro, commented:
gathered has helped the joint venture partners more in line with a sustainable production flow “As previously communicated our lifting sched-
increase our understanding of the subsurface rate. ule significantly stepped up from July onwards
and the ASH field, which is invaluable in plan- UOG holds a 22% non-operating interest in with large liftings in Equatorial Guinea and
ning future work programmes.” the Abu Sennan licence, which is operated by Gabon in particular, combined with robust oil
UOG, which owns a 22% non-operated Kuwait Energy Egypt. The ASH-4 well will be prices, giving Panoro good momentum into
interest in the project, said that its net produc- brought onstream in the coming days and will year end and beyond. The Hibiscus Ruche Phase
tion from Abu Sennan was now 1,027 boepd, immediately contribute to production and rev- 1 development offshore Gabon is progress-
which is below expectations. This is due to the enue generation. ing very well with production growth in sight,
lower yield from ASH-4 and the result of delays ASH-4 is the fourth drilling well in the pro- keeping our outlook of achieving net 12,500
in maintenance workovers to return production gramme of the prolific Abu Sennan licence in bpd of oil during 2023 firmly on track. While
from existing wells, now expected to take place 2022. Now the company will move the ST-1 the Gazania-1 exploration well result offshore
in “the coming weeks”. rig to drill the final well of the current drilling South Africa is disappointing, it was a modest
The company has cut its production guidance programme, the ASW-1X exploration well. This financial exposure in line with our strategy to
for 2022, which is now set at 1,300-1,325 boepd will target un-risked mean recoverable resources selectively explore for a large inventory of pro-
down from 1,450-1,500 boepd previously, Pro- estimated by UOG at approximately 8mn barrels spective upside.
active Investors writes. UOG added that guid- gross in multiple reservoirs to the south-west of “Consistent with our strict financial disci-
ance does not include contributions from well the ASH field. The company sees this as a key pline we have continued to repay debt and main-
workovers. Due in late 2022, they could add 175 well, not just for the significant volumes that it tain balance sheet strength. We look forward to
boepd once completed. is targeting directly, but also for the potential to continue creating further shareholder value and
bna/IntelliNews, November 24 2022 de-risk a number of similar structures in this implementing a capital return policy.”
portion of the licence. Crude lifting update: Total crude oil volumes
bna/IntelliNews, November 24 2022 lifted and sold in Q3 were 880,896 barrels at an
PERFORMANCE average realised price of $105.5 per barrel after
customary price adjustments and associated
UOG sees good results from Panoro Energy announces fees, resulting in proceeds to the Company of
corporate update covering
approximately $93mn for the quarter.
ASH-4 development well in Gabon & South Africa the first nine months were 1,039,797 barrels at
Total crude oil volumes lifted and sold in
Abu Sennan licence an average realised oil price of $105.7 per barrel
after customary price adjustments and associ-
United Oil & Gas (UOG) announced that pre- operations ated fees, resulting in proceeds to the Company
liminary test results from the ASH-4 develop- Panoro Energy has provided a corporate and of approximately $110mn for the nine months.
ment well in the Abu Sennan licence, onshore operations update in advance of its third quar- In October, post period end, Panoro com-
Egypt, indicate a flow-rate of 2,101 barrels per ter 2022 results, which are scheduled for release pleted its scheduled lifting of 647,111 barrels in
day (bpd) of oil and 3mn standard cubic feet on November 30, 2022. Information contained Gabon resulting in proceeds to the Company of
(85,000 cubic metres) per day from the Alam El within this release is unaudited and may be approximately $59mn.

Week 47 24•November•2022 www. NEWSBASE .com P15