United Oil & Gas PLC (UOG) has announced an update on the ASD S-1X exploration well (ASD S-1X), located on the ASD South prospect in the Abu Sennan license, in which UOG holds a 22% working interest.

The ASD S-1X exploration well started drilling on 11 November and has reached a total depth of 3,450 meters on 12 December, under budget and ahead of schedule.

The well has now been completed as a single completion in the AR-C reservoir and successfully tested oil on four choke sizes.

“We are pleased with the successful drilling of the ASD S-1X exploration well and these promising initial well test results. Whilst the initial flow test rates are very encouraging, we await well pressure data from further, long-term testing before we can determine the expected longer-term flow rates from this well and we will provide a further update in due course. This discovery opens a new area of the licence and the operator will now submit a notice of commercial discovery and an application for a development lease at ASD South.  New production facilities will need to be built before the well enters production,” United Chief Executive Officer, Brian Larkin commented.

“Despite this success, it’s important to acknowledge the challenging macroeconomic conditions in Egypt and the persistent difficulty the Company faces in repatriating funds from the country. We remain committed to collaborating with our local Egyptian stakeholders, EGPC, and the operator KEE to navigate and address these challenges,” Larkin added.

Notice of a commercial discovery as well as an application for a development at the ASD South lease is set to be submitted to the Egypt General Petroleum Corporation (EGPC) by the operator Kuwait Energy Egypt, soon. Output is believed to start shortly after approvals are granted and facilities are installed.