United Oil & Gas PLC Update on Podere Maiar (3286C)

TIDMUOG

RNS Number : 3286C

United Oil & Gas PLC

19 January 2018

19 January 2018

United Oil & Gas Plc

Update on Podere Maiar

United Oil & Gas Plc ("UOG", "United" or the "Company") the London Stock Exchange listed oil and gas exploration and development company, notes that Po Valley Energy Limited ("PVE" or "Po Valley"), the operator on the Podere Maiar 1 ("PM1") well on the Selva Gas Field in the Podere Gallina licence - in which United has a 20% interest - have today made an announcement relating to significant gas flows.

Significant Italian gas discovery confirmed

Strong gas flows on test have confirmed a significant commercial discovery for United Oil & Gas Plc at its Selva gas field in northern Italy.

The Company announces today that PVE have reported that the strong gas flows have resulted from successful flow testing of the recently drilled Podere Maiar 1dir exploration well on the Selva gas field within the Podere Gallina Exploration licence in northern Italy (PVE 63% Operator; United Oil & Gas Plc 20%; Prospex Oil & Gas Plc 17%).

That drill program intersected two identified gas reservoirs, C1 and C2, 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. Pressure recovery to formation pressure occurred in 2 minutes. 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 (about 12 minutes).

Table 1: Flow test results C2 level 1282.5m - static well head pressure 123.0 bara

 
 Choke        Flow rate         Flowing well 
                                 head pressure 
-----------  ----------------  --------------- 
 1/8 inch     17,850 scm/day    122.8 bara 
-----------  ----------------  --------------- 
 2/8 inch     66,000 scm/day    120.7 bara 
-----------  ----------------  --------------- 
 18/64 inch   80,700 scm/day    119.5 bara 
-----------  ----------------  --------------- 
 3/8 inch     148,136 scm/day   111.9 bara 
-----------  ----------------  --------------- 
 

Table 2: Flow test results C1 level 1253.5m - static well head pressure 119.7 bara

 
 Choke        Flow rate         Flowing well 
                                 head pressure 
-----------  ----------------  --------------- 
 1/8 inch     14,348 scm/day    119.3 bara 
-----------  ----------------  --------------- 
 1/4 inch     64,475 scm/day    115.0 bara 
-----------  ----------------  --------------- 
 18/64 inch   77,351 scm/day    113.7 bara 
-----------  ----------------  --------------- 
 3/8 inch     129,658 scm/day   105.1 bara 
-----------  ----------------  --------------- 
 

The strong flow rates from two gas bearing levels 99.1% methane gas content and the well's 600m proximity to the Italian national gas grid pipeline connection, clearly make the Podere Maiar 1 dir well a commercial discovery. As Operator, Po Valley will now prepare and submit a production concession application to the Italian Ministry, in the first half of 2018. The Ministry has been formally informed of the discovery and officials attended the successful test.

United Oil & Gas Plc, Brian Larkin:

"We are delighted to announce a commercial discovery on our Italian well. This result is a significant development milestone for our business. The flow test results exceeded our pre-drill expectations and we are now on the road to production. Po Valley will now incorporate this well-test data into the development plan and submit it as part of the application to the Italian authorities to convert a portion of the existing "Exploration Licence" into an "Exploitation Licence."

"We will continue to keep markets updated on potential deal flow along with operational portfolio developments."

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:

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

The following table outlines the Company's current licences:

 
 Country           Licence              Operator            United Holding 
----------------  -------------------  ------------------  --------------- 
                   Podere Gallina 
 Italy              Licence             Po Valley Energy    20% 
----------------  -------------------  ------------------  --------------- 
                   Waddock Cross 
 United Kingdom     Field               Egdon Oil Plc       26.25% 
----------------  -------------------  ------------------  --------------- 
 United Kingdom    PL090 Exploration    Egdon Oil Plc       18.95% 
----------------  -------------------  ------------------  --------------- 
 United Kingdom    P1918*               Corallian           10%** 
----------------  -------------------  ------------------  --------------- 
 United Kingdom    PEDL 330             Corallian           10%** 
----------------  -------------------  ------------------  --------------- 
 United Kingdom    PEDL 345             Corallian           10%** 
----------------  -------------------  ------------------  --------------- 
                                        Tullow Oil 
 Jamaica           Walton-Morant         plc                20% 
----------------  -------------------  ------------------  --------------- 
 

*Offshore

** Option to acquire a further 10%

This information is provided by RNS

The company news service from the London Stock Exchange

END

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January 19, 2018 02:00 ET (07:00 GMT)