Irish explorer United Oil and Gas is set for a revenue boost after progress was made on a well in Egypt.
The group said on Friday it was pleased to announce the spudding of the Al Jahraa-13 development well in the Abu Sennan licence, onshore Egypt.
Drilling of the well, which will target stacked Upper and Lower Bahariya reservoir targets, has commenced.
The well will take approximately 65 days to drill and complete and is fully funded from operational cashflow. It can “rapidly be brought into production”, generating revenue and additional production, the group said.
The well is the fifth and final well in the Abu Sennan 2021 drilling programme before the 2022 drilling programme begins, which is planned to consist of five exploration and development wells.
United holds a 22 per cent working interest in the licence, which is operated by Kuwait Energy Egypt.
Brian Larkin, chief executive officer, said: “Following the success of Al Jahraa-8, we are delighted to now be drilling the Al Jahraa-13 well, which can add immediate cash flow to the company.
“There is extensive potential in the Abu Sennan licence as demonstrated by the drilling success so far and the Joint Venture partners are pleased to once again be testing this.
“In this high oil price environment, we look forward to updating shareholders on operations and will update the market in due course on the progress of the well.”
