AIM-listed United Oil & Gas has announced an update on the ASH-8 development well in the Abu Sennan (onshore) licence in Egypt. United holds a 22% working interest in the licence, which is operated by Kuwait Energy Egypt.
Summary
- The ASH-8 well commenced production on 16 March at an initial stabilised rate of approximately 2,980 bopd and 2.64 mmscf/d gross (approximately 656 bopd and 0.58 mmscf/d net)
- Production started six weeks ahead of schedule, at a higher rate than originally planned, so that H1 production is now expected to be at the upper end of the guided range of 700-900 b/d net
CENDRE-8
As previously announced, the ASH-8 development well was interpreted to have encountered 22 metres of net oil production in the main target of the Alam El Bueib ("AEB") reservoir, in line with pre-drill expectations. After reaching TD on 21 February, the well was completed and tested on a number of different choke sizes, as summarised in the table below.
The well has now been tied in to the existing facilities and commissioned at an initial rate of c. 2,980 bopd and 2.64 mmscf/d gross (656 bopd and 0.58 mmscf/d net) on a 32/64″ nozzle. Production from the well will continue to be monitored, so that the long-term production potential can be assessed. However, the currently stable rates associated with the lack of water cut and the pressures observed in the well provide positive indicators of its longer term potential. With the well coming on stream almost six weeks ahead of schedule and rates above pre-drill expectations, the company's actual production in the first half of the year is expected to be at the upper end of the 700-900 bbls/d net production guidance.
The ST-1 rig is now heading to the ASD-3 location to drill the second development well of the 2023 drilling programme, which is expected to start in the coming weeks.
Brian Larkin, CEO, commented:
"We are very pleased with the results from the ASH-8 well and it is pleasing to see the well come on stream at a stabilised production rate of over 2,900 bbl/d approximately six weeks ahead of schedule. This is the fifth well in the highly productive ASH field, which has so far produced over 4 million barrels of oil. The success of ASH-8 will have a positive impact on the group's production levels and revenues and further highlight the long-term value of the field. We look forward to drilling the next development well at ASD-3 at a location that has been highly evaluated by the JV partners following the success of the ASD-2 well in March 2022. '