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United Oil and Gas higher as ASH gas pipeline completed at Abu Sennan licence

The company said the gas pipeline was brought onstream on December 27 and has increased environmental efficiency and gas recovery rates across the project

United Oil & Gas PLC - United Oil and Gas higher as ASH gas pipeline completed at Abu Sennan licence

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.

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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.

Quick facts: United Oil & Gas PLC

Price: 2.95 GBX

AIM:UOG
Market: AIM
Market Cap: £18.44 m
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United Oil & Gas kickoff 2021 with a bang as drilling gets underway in Egypt

United Oil & Gas PLC's (LON:UOG) Brian Larkin speaks to Proactive London's Katie Pilbeam after the beginning of drilling for the ASH-3 development well at the Abu Sennan licence.  Speaking about the timeline for the project, Larkin says, 'we anticipate a well result in late February,...

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