United Oil & Gas PLC Significant Upgrade to Italian Resources (1724X)

TIDMUOG

RNS Number : 1724X

United Oil & Gas PLC

26 April 2019

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

26 April 2019

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

Significant Upgrade to United's Italian Resources

-- CPR commissioned by operator Po Valley has added significant resources to the Podere Gallina Licence, onshore Italy

-- Includes 14.1Bcf of additional gross Contingent Resources and a 74% increase in the unrisked mid-case gross Prospective Resources to 91.5 Bcf

-- CPR confirms the previously reported gross 2P Reserves of 13.3 Bcf assigned to the Podere Maiar-1 well (Selva Field)

-- First production from the Selva Field remains on schedule for 2020, targeting rates of 150,000 cubic metres per day

United Oil & Gas Plc, the AIM-traded oil and gas exploration and development company, is pleased to announce a significant upgrade to the reported resources for the Podere Gallina Licence, onshore Italy.

Further to the RNS released on February 7 2019, a CPR covering all of the Podere Gallina Licence, including the Selva Malvezzi Production Concession has now been commissioned by Po Valley Energy Limited through consultants CGG. In addition to the gross 2P Reserves of 13.3Bcf that were previously reported, a further 14.1Bcf of gross 2C Contingent Resources, and 91.5Bcf of unrisked gross Prospective Resources have now been included in the resource inventory. United Oil & Gas holds a 20% economic interest in the Licence.

 
 
                  Po Valley Energy Report - Podere Gallina Licence 
                  Summary 
 Reserves       Gross   Net Attributable   Gross   Net Attributable   Gross   Net Attributable 
               ------  -----------------  ------  -----------------  ------  ----------------- 
                                  United                     United                     United 
                   1P                 1P      2P                 2P      3P                 3P 
               ------  -----------------  ------  -----------------  ------  ----------------- 
                  4.1                0.8    13.3                2.7    29.8                6.0 
               ------  -----------------  ------  -----------------  ------  ----------------- 
 Contingent                       United                     United                     United 
  Resources        1C                 1C      2C                 2C      3C                 3C 
               ------  -----------------  ------  -----------------  ------  ----------------- 
                  5.6                1.1    14.1                2.8    30.7                6.1 
               ------  -----------------  ------  -----------------  ------  ----------------- 
 Prospective      Low             United    Best             United    High             United 
  Resources                          Low                       Best                       High 
               ------  -----------------  ------  -----------------  ------  ----------------- 
                 54.3               10.9    91.5               18.3   194.8               39.0 
               ------  -----------------  ------  -----------------  ------  ----------------- 
 
   Notes: 1.              United's net attributable figures are based on 20% economic interest 
                2.               Operator is Po Valley Operations Pty Limited 
                3.               Figures stated in accordance with SPE PRMS 

Brian Larkin CEO, United Oil and Gas PLC:

"This latest CPR provides further confirmation of the significant upside on the Podere Gallina Licence. This report goes beyond the scope of the recent CPR published by United Oil and Gas and in doing so, greatly enhances our position and our resource calculations.

"The upside identified in this report adds to that previously reported for the recently drilled 13.3bcf Selva Field. This is a low-cost, high-return project, which is continuing to be progressed towards production. When Selva begins production in 2020 at a targeted rate of 150,000 cubic metres of gas per day, it will deliver significant cash flow to United, further fuelling our potential for growth, not only on the Selva Licence including the neighbouring East Selva, Riccardina, and Fondo Perino prospects, but also across our portfolio of low risk European assets with additional near-term production opportunities and frontier exploration in South America and Africa offering transformational upside."

The recent United Oil and Gas RNS regarding the CPR for the Selva gas field can be sourced at this link

https://polaris.brighterir.com/public/united_oil_and_gas/news/rns/story/wvqk2zx

Glossary

'1P' means Proved Reserves

'2P' means Proved plus Probable Reserves

'3P' means Proved plus Probable plus Possible Reserves

Bcf means Billion Cubic Feet

'2C' or 'Contingent resources' means quantities of petroleum estimated as of a given date, to be potentially recoverable from known accumulations by application of development projects, but which are not currently considered commercially recoverable due to one or more contingencies

'Prospective Resources' means those quantities of petroleum estimated, as of a given date, to be potentially recoverable from undiscovered accumulations by application of future development projects. Prospective Resources have both an associated chance of discovery and a chance of development. They are further subdivided in accordance with the level of certainty associated with recoverable estimates assuming their discovery and development and may be sub-classified based on project maturity.

'Proved Reserves' means those quantities of petroleum which, by analysis of geological and engineering data, can be estimated with reasonable certainty to be commercially recoverable, from a given date forward, from known reservoirs and under current economic conditions, operating methods, and government regulation - Proved reserves can be categorized as developed or undeveloped

'Probable reserves' are those unproved reserves which analysis of geological and engineering data suggests are more likely than not to be recoverable. In this context, when probabilistic methods are used, there should be at least a 50% probability that the quantities actually recovered will equal or exceed the sum of estimated proved plus probable reserves

'Possible Reserves' are those unproved reserves which analysis of geological and engineering data suggests are less likely to be recoverable than probable reserves. In this context, when probabilistic methods are used, there should be at least a 10% probability that the quantities actually recovered will equal or exceed the sum of estimated proved plus probable plus possible reserves

Reserve Status Categories

'PRMS' means the 2018 Petroleum Resource Management System

'SPE' means Society of Petroleum Engineers

Jonathan Leather, an Executive Director of the Company, who has over 20 years of relevant experience in the oil and gas industry, has reviewed and approved the information contained in this announcement. Dr Jonathan Leather is a qualified person as defined in the guidance note for Mining Oil & Gas Companies of the London Stock Exchange, and is a member of the Petroleum Exploration Society of Great Britain and the Society of Petroleum Engineers.

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 (Nominated 
  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 an AIM-traded company. 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 
                                      Po Valley Energy 
 Italy      Podere Gallina Licence     Limited              20% 
           ------------------------  --------------------  ---------------- 
                                      Egdon Resources 
 UK         Waddock Cross Field        UK Limited           26.25% 
           ------------------------  --------------------  ---------------- 
                                      Egdon Resources 
 UK         PL090 Exploration          UK Limited           18.95% 
           ------------------------  --------------------  ---------------- 
                                      Corallian Energy 
 UK         P1918                      Limited              10% 
           ------------------------  --------------------  ---------------- 
                                      Corallian Energy 
  UK        PEDL 330                   Limited              10% 
           ------------------------  --------------------  ---------------- 
                                      Corallian Energy 
 UK         PEDL 345                   Limited              10% 
           ------------------------  --------------------  ---------------- 
                                      United Oil & Gas 
 UK         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

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April 26, 2019 02:01 ET (06:01 GMT)