Irish company United Oil & Gas has reported first oil production from the ASD-2 onshore well
Republic of Ireland-based United Oil & Gas has said initial flows from its ASD-2 onshore oil well in Egypt have exceeded expectations.
The company, which has a 22 per cent stake in the wider Abu Sennan licence, said the well started production at a rate of about 2,100 barrels a day (b/d).
It took the company six days from well completion to start production and revenue generation from the well.
ASD-2 was the first well to be drilled at the concession this year, and it will be followed by a planned exploration well called ASV-1X.
Amid higher global oil prices, United Oil & Gas is now planning to drill a total of five wells at the Abu Sennan concession.
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Previously, it was planning to drill four wells, and said a possible fifth well would be dependent on the results of technical studies at the Al-Jahraa field.
“We have had a great start to the year with the agreement on the crown milestone payment followed by this impressive drilling result,” Brian Larkin, United’s CEO, said.
“We look forward to continuing our 2022 drilling programme with the ASV-1X exploration well, due to spud [process of beginning to drill a well in the oil and gas industry] in the coming days,” he said.
Larkin said that the ASD-2 well was the eighth consecutive successful well at the Abu Sennan licence since it acquired it in 2020.
United Oil & Gas has stated that its strategy is to focus on low-risk production and development projects in Egypt, Italy and the UK, as well as what it terms “high-impact exploration” in Jamaica.
The latest positive announcement from United Oil & Gas comes days after London-based SDX Energy announced a new gas discovery from its SD-5X exploration well in the South Disouq gas field in Egypt.
The discovery was announced on 22 March.
SDX Energy, which has a 55 per cent operated interest in the gas field, said the well targeted the Warda prospect, and was first drilled on 4 March.
The initial drilling was completed on time and within budget.
SDX Energy is now planning to complete, test and tie-in the well. It will be tied-in through an existing flo-line to the central processing facility, and the company estimates that the well will be in production in June.
This article is published by MEED, the world’s leading source of business intelligence about the Middle East. MEED provides exclusive news, data and analysis on the Middle East every day. For access to MEED’s Middle East business intelligence, subscribe here