United Oil & Gas PLC Spudding commences on Italian licence (0845X)

TIDMUOG

RNS Number : 0845X

United Oil & Gas PLC

21 November 2017

21 November 2017

United Oil & Gas Plc

("UOG", "United" or the "Company")

Spudding commences on Italian licence

United Oil & Gas Plc ("UOG", "United" or the "Company"), the London Stock Exchange listed oil and gas exploration and development company, issues the following update on the Italian Podere Gallina licence:

United Oil & Gas Plc, is delighted to announce that further to the update announcement of 24 October 2017, Po Valley Energy Ltd ("PVE"), the licence operator, has spudded (commenced drilling) the Podere Maiar well. It is understood that the well will take approximately 5 weeks to drill. Well-testing is planned in the case of success, and will be undertaken once drilling operations have been completed

Brian Larkin, CEO commented:

"We are extremely pleased that United's first well has been spudded. This will be an important milestone in the development of the Company.

United has a clear strategy of acquiring, developing and unlocking the value of low risk projects in Europe, while seeking high impact exploration opportunities in Africa and Latin America. This first well is an important step in implementing that strategy."

This announcement contains inside information for the purposes of Article 7 of Regulation (EU) 596/2014

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) 
=====================================  ================================ 
                                        [phone] 
 Christian Dennis                        1902 
=====================================  ================================ 
 
 Beaumont Cornish Limited (Financial 
  Adviser) 
=====================================  ================================ 
 Roland Cornish and Felicity            [phone] 
  Geidt                                  3396 
=====================================  ================================ 
 
 Murray (PR Advisor)                     [phone] 
=====================================  ================================ 
 Joe Heron                              [e-mail] 
=====================================  ================================ 
 

Editor's Note:

Podere Gallina Project (Italy)

On 4 May 2017, UOG and Po Valley Operations Pty Ltd ("PVO"), a company incorporated and registered in Australia, a wholly owned subsidiary of Po Valley Energy Ltd ("PVE"), entered into the Podere Gallina Farm-in Agreement ("Farm-in Agreement"), pursuant to which PVO conditionally agreed to sell to UOG, a 20 per cent. interest in the Podere Gallina Exploration Licence held by PVE and awarded by the Ministry of Economic Development (the "Ministry") on 2 December 2008 (the "Exploration Licence"), and which includes the Podere Maiar-1 exploration well.

The principal condition of the Farm-in Agreement was that UOG raise a minimum of GBP3 million. Accordingly, having completed a placing at the time of re-admission on 31 July 2017, the Farm-in Agreement is now unconditional.

Pursuant to the Farm-in Agreement, UOG has a 20 per cent. working interest in the Exploration Licence on funding 40 per cent. of the cost of the Podere Maiar appraisal well that is scheduled to be drilled in Q4 2017. PVE, which was awarded the Exploration Licence in September 2008, is the licence operator and has an 80 per cent. working interest in the Exploration Licence.

Accordingly, UOG has the following interest in the Exploration Licence:

Podere Gallina licence details

   Operator                     UOG Interest (%)            Status                 Licence expiry date Licence Area 

Po Valley Energy Ltd 20% Exploration 3 February 2018 506 km(2)

Podere Gallina Project Summary

 
                                                  Base-case    Near-Term Activity 
                     Equity     CoS     Resource        Net 
    Asset               (%)     (%)         Type  Resources 
    Podere Maiar         20  N/A(1)   Contingent  0.57mmboe     Rig contracted 
     (Selva Strat)                                               for drilling 
                                                                 in Q4 '17 
                                                                3D seismic to 
                                                                    de-risk 
                                                               prospect planned 
    East Selva           20      13  Prospective  1.16mmboe          post- 
                                                               Podere Maiar 
                                                                well 
                                                                3D seismic to 
                                                                    de-risk 
                                                               prospect planned 
    Fondo Perino         20      34  Prospective  0.49mmboe          post- 
                                                               Podere Maiar 
                                                                well 
                                                                 Plans to be 
                                                                   firmed-up 
                                                                  post-Podere 
    Cembalina            20      51  Prospective  0.11mmboe       Maiar well 
 

(2018)

(1) Minimal geological risk, as hydrocarbons are already proven

This information is provided by RNS

The company news service from the London Stock Exchange

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November 21, 2017 04:03 ET (09:03 GMT)