United Oil & Gas Plc (LON:UOG) has given investors details from a new third party assessment of two of the company’s assets – the Crown oil discovery asset in the North Sea and the Waddock Cross field in the Wessex Basin.
The competent persons report identified 6.5mln barrels of gross recoverable contingent resources at the Crown discovery.
It is the first CPR undertaken on the asset, and, the company noted that the resource estimate is deemed to be conservative. The report is expected to support a farm-out process.
At Waddock Cross, the report updated a prior assessment and it states 1.55mln barrels of recoverable gross contingent resources. The figures for both oil-in-place and recoverable resources increased in the new version.
"Since our inception, United has procured a portfolio of exceptional assets, normally beyond the scope of a company of this size,” said Brian Larkin, United chief executive.
“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.”
United noted that similar reports are anticipated ‘shortly’ for its assets in Jamaica and Italy.
“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,” Larkin added.
Larkin highlighted that “an extensive operations programme” will begin imminently, starting with the Colter well on England’s south coast and also in Italy, where production is slated to come online next year.
“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,” he added.
“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.”