UOG Announces Successful Testing of Al Jahraa-8 Development Well

Source: www.oilegypt.com 8/2/2021, Location: Africa

United Oil & Gas PLC ("UOG") is pleased to provide the following update on the testing of the Al Jahraa-8 ("AJ-8") development well in the Abu Sennan concession, onshore Egypt ("Licence"). United holds a 22% working interest in the Licence, which is operated by Kuwait Energy Egypt.

Highlights from AJ-8 Well-testing:

- Preliminary short-term test results from the Lower Bahariya reservoir indicate:
- A maximum flow rate of 2,093 bopd and 3.63 mmscf/d (c. 2,819 boepd gross; 620 boepd net) on a 64/64" choke
- A rate of 1,189 bopd and 1.22 mmscf/d (c. 1,433 boepd gross; 315 boepd net) on a more constrained 26/64" choke

- Headline test results exceed United's internal pre - drill expectations.

- The well will be brought onto production from the Lower Bahriya reservoir in the coming days

- The EDC-50 rig will now move 7km to the north of the Al Jahraa Field, where drilling of the ASX-1X exploration well is due to commence in the coming days

United's Chief Executive Officer, Brian Larkin commented:

"We are delighted to announce further positive news from the AJ-8 development well; continuing our run of success on the Abu Sennan licence. With over 40m of net pay previously reported, the AJ-8 well was expected to flow at good rates, but it is great to have our expectations exceeded with these encouraging initial test rates recorded from the Lower Bahariya.

"We will now work with our partners to bring the well on stream in the coming days, at a rate which will maximise the long-term production and contribute to our low cost production base. We will move ahead to spud the ASX-1X exploration well, the next step in our plans to further realise the value of this exceptional licence."

Al Jahraa-8 Well Detail

The AJ-8 well commenced drilling on 2nd May, targeting the Abu Roash and Bahariya reservoirs in an undrained portion of the Al Jahraa field. The original hole was sidetracked after encountering poor hole conditions in the highly deviated well.

Preliminary interpretations indicate the sidetrack encountered net pay in the AR-E, and over 30m of net pay across the Upper Bahariya and Lower Bahariya Upper reservoirs. Due to hole conditions in the sidetrack, a decision was made to run liner at 4,314m MD and TD the well without reaching the Lower Bahariya Lower reservoir that had been a pre-drill target.

The AJ-8 well has now been successfully tested from the Lower Bahariya reservoir. Preliminary testing of the Lower Bahariya reservoir was carried out over a 17 hour period on a number of different choke sizes. Preliminary results indicate a maximum flow rate of 2,093 bopd and 3.63 mmscf/d (c. 2,819 boepd gross; 620 boepd net) on a 64/64" choke, and a rate of 1,189 bopd and 1.22 mmscf/d (c. 1,433 boepd gross; 315 boepd net) on a more constrained 26/64" choke.

The well will now be completed and brought onstream from the Lower Bahariya reservoir. The hydrocarbon-bearing zones that were encountered in the Upper Bahariya and AR-E will be tested and brought onstream at a later date.

After completing the AJ-8 well, the EDC-50 rig will move c.7km to the north of the Al Jahraa field to drill the ASX-1X exploration well, which is expected to spud in the coming days. This is expected to be the final well of the 2021 campaign, with longer-term plans for unlocking the additional potential that exists in the Abu Sennan licence currently under discussion.

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