United Oil & Gas Plc (UOG) has announced final audited results for the year ended 31 December 2023 and Notice of AGM.

Egypt delivered steady production throughout the year with several wells successfully drilled and brought into production. UOG maintained the record of zero LTI’s, TRIR’s and only a minor environmental incident.

As for the financial performance, the company stated that 2023 was a challenging operating environment, UOG results reflect the impact of the writedown of the Egyptian asset of circa $20 million, resulting in a loss for the year. The company have maintained its disciplined cost management, operational efficiencies, and strategic divestments enabled it to navigate market uncertainties.

The company made the strategic decision to divest from Egypt in late 2023 given the current economic and regional challenges. It was in advanced discussions with the operator regarding the potential sale of its 22% interest in the Abu Sennan concession.

However, the discussions were aborted with the operator following legal advice, notwithstanding attempts to agree a mutual acceptable sale and purchase agreement. In January 2024, UOG received a default notice for unpaid cashcall of $3.8 million from the operator which was not remedied. This has started a process which will lead to the Company withdrawing from the Abu Sennan Concession, UOG revealed.