Sign up
Oil Capital
Why invest in UOG?
Big Picture

United Oil & Gas kicks off 2019 with good news from UK and Italy

“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.”
Isle of Wight
BigPicture
Colter is off the UK's south coast near the Isle of Wight
 
  • Oil and gas company with assets in the UK, Italy and West Indies

  • Year ahead will see major developments on all propects

  • Company estimates assets already have NPV of US$80m (£61.5mln)

  • Current market value £16mln at 4.75p

  • United Oil & Gas Plc (LON:UOG) switches to AIM on 28 February from standard listing

 

What it owns

Italy - Selva gas field (20%)

UK – Colter (10% + 10% option) offshore

UK – Crown Discovery (100%) offshore

UK – Acle (24%) offshore

UK - Waddock Cross (26.25%) onshore

UK – Broadmayne (18.95%)

Jamaica – Walton Morant/Colibri (20%) offshore

 

How is it doing

Preliminary approval recently indicated for the Selva gas field in Italy, with significant cashflow expected from 2020.

Competent Person’s Report (CPR) indicates 6.5mln contingent resources at Crown and 1.55mln at Waddock Cross.

CPRs expected shortly for Colibri prospect on the Tullow Oil-operated Walton-Morant licence, offshore Jamaica and at Selva.

Drilling of Colter near the Isle of Wight to start shortly.

 

What the boss says

"The preliminary award of the Selva production licence is a key regulatory milestone in advancing Selva towards production,” said Brian Larkin, United Oil & Gas chief executive.

“It is also a significant milestone for United as commercial gas production at Selva is expected to generate significant cash flow for the company from 2020 onward.”

“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. 

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.”

 

Latest video interview

 

Inflexion points

  • 3-D seismic is planned to increase the size of the resource at Selva
  • CPRs for Jamaica and Selva
  • Farm-ins at Colibri and Crown
  • Drillng at Colter 

 

What the broker says

SP Angel: “The granting of a production licence for Podere Gallina is a notable achievement for the company, especially in the context of the sclerotic Italian approvals process.”

“There are a number of subsequent stages to successfully navigate before first gas is produced, and the milestone of the receipt of sales revenue into the control account occurs, but this is a significant step towards achieving the critical point of self-sustaining cash flow.”

 

PhilW.jpg


Register here to be notified of future UOG Company articles
View full UOG profile View Profile
View All

Related Articles

© oil Capital 2019

Oil Capital, a subsidiary of Proactive Investors, acts as the vanguard for listed oil companies to interact with institutional and highly capitalised investors.
Headquartered in London, Oil Capital is led by a team of Europe's leading analysts and journalists, publishing daily content, covering all key movements in the Technology market.