United Oil & Gas Plc has announced the results of an independent Competent Person’s Report (‘CPR’) prepared by ERC Equipoise Ltd (‘ERCE’) for the Crown Oil Discovery on licence P2366 in the Central North Sea and the Waddock Cross Field on Licence PL090 in the Wessex Basin.
The Crown CPR, which is the first CPR commissioned by United on the Crown Discovery, estimates gross unrisked 2C oil contingent resources of 6.35 MMstb for this asset.
The updated CPR on the Waddock Cross Field is based on recently reprocessed seismic, and has increased the gross unrisked 2C oil contingent resources from 1.23 MMstb to 1.55 MMstb.
The above CPRs form part of a number of reports that have been commissioned by the Company. CPRs covering the large undrilled Colibri prospect on the Walton-Morant Licence offshore Jamaica and the Selva Gas Field on the Podere Gallina licence onshore Italy are currently being finalised.
This is the first CPR for the Crown Discovery. A farm out process to seek other industry partners to move the Crown Discovery forward is already underway, and has seen considerable interest within the industry. These new CPR numbers, which in the Company’s view are based on a conservative assessment of recovery of the in–place oil, will be invaluable in the farm-out process as they provide necessary data to give greater certainty to potential investors.
Waddock Cross Field
The Waddock Cross CPR updates previous independent estimates and is based on reprocessed and improved data. Both the oil in - place and recoverable resources estimates have increased. This CPR, along with other analysis already completed, will guide the Company and the operator in developing a drilling plan for the licence, with a well targeted later this year.
United Oil & Gas PLC CEO, Brian Larkin, said: "Audited gross 2C oil contingent resources of nearly 8 MMstb, with over 6.4 MMstb net to United, for just two of our UK assets represents an excellent outcome. Updated volumetrics are due shortly for the large undrilled Colibri prospect on the Tullow Oil-operated Walton-Morant licence, offshore Jamaica and also for the development stage Selva Gas Field, onshore Italy and I look forward to sharing the results of these in due course.
“Since our inception, United has procured a portfolio of exceptional assets, normally beyond the scope of a company of this size. While we will continue to build our portfolio, adding licences where we see opportunity, 2019 will see a greater emphasis on unlocking the value of our asset base. Independent verification, through CPRs on each asset, will form an important part of this process.
There will be an extensive operations programme, beginning imminently with the Colter drill and including further activity in Italy, moving to production in 2020. We will also seek to unlock value through farm downs in Jamaica and in our Crown discovery, the commerciality of which is supported by the CPR estimates reported here. With Company estimates of close to US$80m NPV of assets already in place, we look forward to growing awareness of the considerable strength of the United business.”