AIM-listed United Oil & Gas, the growing oil and gas company with a portfolio of production, development, exploration and appraisal assets has issued the following operations update ahead of its half year results on 28 September 2021.
In addition to today’s release, a webcast with the Company’s management team will be held at 10:00AM today, which can be accessed via the following link https://bit.ly/3kL3wha.
H1 2021 production from the seven producing fields which make up the Abu Sennan licence net to the Company’s working interest averaged 2,730 boepd in line with full-year guidance of 2,500 to 2,700 boepd.
The ASH field, which currently has three wells in production has performed exceptionally, with over 3 million barrels gross produced since it came on stream, representing c. 60% of oil production on the Abu Sennan licence since the start of 2020. Since early July the proportion of water to oil being produced (‘water-cut’) has increased on all three producing wells, particularly on ASH-2, where it has increased at a faster rate than expected. The increase in water cut has been accompanied by an associated drop in production from the ASH field.
The joint venture (‘JV’) partners have performed a number of operations to investigate options for controlling the water-cut and stabilising production, including looking at the effect of differing choke sizes, shutting in various perforated intervals, and running production logging tests. The JV partners are still in the early days of monitoring the performance of the wells since the interventions were performed and are continuing to consider other options that could help stabilise the decline.
Click on the link below for full report