United Oil and Gas PLC (LON:UOG) shares rose on Wednesday as the company said the ASH gas pipeline has been completed at the Abu Sennan licence in Egypt, in which it holds a 22% interest.
The AIM-listed company said the pipeline, which links the ASH field to gas processing facilities at El Salmiya, was completed on time and under budget and successfully brought onstream on December 27. United added that over the last two days the pipeline has delivered an average of 5.45mln standard cubic feet per day (MMscf/d) of gas, around 1,090 barrels of oil equivalent per day (boepd), equating to an additional 1.2MMscf/d (240 boepd) to its own working interest and in line with expectations.
READ: United Oil & Gas appoints former Tullow Oil CFO Tom Hickey as an independent non-executive director
United also said that the ASH pipeline has also increased environmental efficiency and gas recovery rates across the Abu Sennan licence, and that the pipeline will also monetise any gas produced by the ASH-3 well more efficiently once it is completed.
"Since United entered the Abu Sennan licence, the joint venture partners have made excellent progress in increasing production, not just through drilling activity but also through low capital expenditure on infrastructure development. We look forward to further progress in 2021 with the recommencement of drilling activities, starting with the ASH-3 development well", United’s chief executive Brian Larkin said in a statement.
Shares in the firm were up 1% at 2.9p in early trading.