United Oil & Gas PLC Production concession awarded for Podere Gallina (0668N)

TIDMUOG

RNS Number : 0668N

United Oil & Gas PLC

15 January 2019

United Oil & Gas PLC / Index: LSE / Epic: UOG / Sector: Oil & Gas

15 January 2019

United Oil & Gas PLC ("United" or the "Company")

Production concession awarded for Podere Gallina

   --    Development of Selva Gas Field granted preliminary approval 
   --    Targeting gas production of up to 150,000 cubic metres per day gross in 2020 

-- Subject to successful results of an upcoming 3D seismic programme, further wells will be planned to target the additional prospectivity on the licence

-- Further high-impact activity across the portfolio expected in Q1 2019 including spudding of Colter well in the Wessex Basin and updated CPRs for UK, Jamaican and Italian assets

United Oil & Gas Plc, the London Stock Exchange listed oil and gas exploration and development company, is pleased to announce that it has been advised by the operator, Po Valley Energy Limited ('PVE'), that the production concession application ('the Application') to develop the Selva Gas Field ('Selva') onshore Italy has been granted preliminary approval by the Italian Government.

Selva, which is located less than one kilometre from the Italian National Gas Grid, includes the Podere Maiar-1d appraisal/redevelopment well ('Podere Maiar'), where strong flow rates from testing operations confirmed a significant commercial gas discovery in January 2018. United holds a 20% interest in Selva which sits within the Podere Gallina Exploration Permit ('Podere Gallina' or the 'Licence'), located in the Po Valley region of Italy, a proven hydrocarbon region where over 5,000 wells have been drilled historically.

The development plan will involve the installation of a fully automated gas plant at the existing Selva/Podere Maiar-1d well site and the running of a one-kilometre long pipeline to connect to the nearby Italian National Grid connection. The development is targeting production at a rate of up to 150,000 cubic metres (5.3 mmscf/day) a day gross from the C1 and C2 reservoirs in the Medium-Upper Pliocene sands of the Porto Garibaldi Formation. The thickest level C2 (net pay 25.5 m) reported a peak flow rate of 148,136 scm/day on a 3/8 inch choke and a pressure differential of 11 bar with no water production. The higher level C1 (net pay 15.5 m) also reported strong flow test results with a peak flow rate of 129,658 scm/day on a 3/8 inch choke with good pressure recovery.

Subject to successful 3D seismic results from the upcoming programme, additional wells will be drilled to target the additional prospectivity in the licence, including the Selva East, Selva South Flank, and Riccardina structures.

United Oil & Gas PLC CEO, Brian Larkin, said: "The preliminary award of the Selva production licence is a key regulatory milestone in advancing Selva towards production. It is also a significant milestone for United as commercial gas production at Selva is expected to generate significant cash flow for the Company from 2020 onward. As well as progressing with the development, we are also excited by the upcoming 3D seismic acquisition in the Licence, which will focus on proving up the huge potential of the wider licence area. Subject to successful results from this acquisition programme, additional wells will be drilled, aiming to significantly increase the overall resource base within the Selva concession.

"This development kicks off an exciting year for 2019. In Q1 2019, shareholders can expect the imminent spudding of the Colter well in the Wessex Basin as well as the near-term publication of a series of CPRs including updated volumetrics for our Crown Oil Discovery in the North Sea and the Waddock Cross Field in the Wessex Basin and also for both our large, high-impact, offshore Jamaican licence and Podere Gallina in Italy. With multiple value triggers due in the coming weeks and months, we look forward to updating shareholders as progress is made both at Selva and across our growing portfolio."

**ENDS**

For more information please visit the Company's website at www.uogplc.com or contact:

 
 United Oil & Gas Plc (Company) 
 Brian Larkin                           [e-mail] 
 
 Optiva Securities Limited (Broker) 
 Christian Dennis                       [phone] 
 
 Beaumont Cornish Limited (Financial 
  Adviser) 
 Roland Cornish and Felicity Geidt      [phone] 
 
 Murray (PR Advisor)                    [phone] 
 Joe Heron                              [e-mail] 
 
 St Brides Partners (Financial 
  PR/IR) 
 Frank Buhagiar and Juliet Earl         [phone] 
 
 
 
 

Notes to Editors

United Oil & Gas plc (UOG) is listed on the main market of the London Stock Exchange. United was established to explore, appraise and develop low risk assets in Europe and to develop higher risk, higher impact exploration projects in the Caribbean, Latin America and Africa.

The following table outlines the Company's licence interests:

 
 Country           Licence              Operator              United Interest 
                   Podere Gallina       Po Valley Energy 
 Italy              Licence              Limited              20% 
                  -------------------  --------------------  ---------------- 
                   Waddock Cross        Egdon Resources UK 
 United Kingdom     Field                Limited              26.25% 
                  -------------------  --------------------  ---------------- 
                                        Egdon Resources UK 
 United Kingdom    PL090 Exploration     Limited              18.95% 
                  -------------------  --------------------  ---------------- 
                                        Corallian Energy 
 United Kingdom    P1918                 Limited              10% 
                  -------------------  --------------------  ---------------- 
                                        Corallian Energy 
 United Kingdom    PEDL 330              Limited              10% 
                  -------------------  --------------------  ---------------- 
                                        Corallian Energy 
 United Kingdom    PEDL 345              Limited              10% 
                  -------------------  --------------------  ---------------- 
                                        United Oil & Gas 
 United Kingdom    P2366                 Plc                  95% 
                  -------------------  --------------------  ---------------- 
 Jamaica           Walton-Morant        Tullow Jamaica Ltd    20% 
                  -------------------  --------------------  ---------------- 
 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact [e-mail] or visit www.rns.com.

END

UPDBIMRTMBABBBL

(END) Dow Jones Newswires

January 15, 2019 02:00 ET (07:00 GMT)