United Oil and Gas’ (LON: UOG) share price is gaining after the company revealed a positive result from drilling in the ASD-1X exploration well in the Abu Sennan concession, Egypt.
UOG, which holds a 22% working interest in the license, said preliminary results showed the ASD-1X exploration well encountered a total of at least 22m net oil pay interpreted across several reservoirs, including the Abu Roash C, Abu Roash E, Lower Bahariya, and Kharita Formations.
United Oil and Gas shares are currently trading 7.54% above Thursday’s close at 5.16p.
The company are now planning well testing, and, if successful, it will be followed by an application to Egyptian General Petroleum Corporation (EGPC) for a development lease over this new discovery.
“Today's announcement is another positive result from Abu Sennan, which, initial interpretations suggest, is in line with our pre-drill estimates. With the well testing set to begin shortly, we look forward to understanding the full potential of the ASD-1X well,” said United's Chief Executive Officer, Brian Larkin,
Not long after the Abu Sennan announcement, UOG also reported that the Italian government has given environmental approval to develop the Selva natural gas field concession in Northern Italy, in which United own a 20% economic interest.
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