In its announcement of the audited results for 2021, United Oil & Gas (UOG) stated that its working interest output in Egypt for 2022 is expected to average between 1,500 – 1,650 barrels of oil equivalent per day (boe/d) net.
This includes production from current wells with historical decline rates applied, as well as the output from two other development wells planned to be drilled in 2022 to come online in Q3 or Q4 2022.
The net output does not include contributions from the company’s two planned exploration wells. UOG’s capital expenditure for 2022 is expected to be around $7.2 million, fully funded from existing operations, circa $6.8 million is set to be invested in Egypt, on eight workovers, facility upgrades, and five wells. Meanwhile, $0.4 million are planned across the other assets in the company’s portfolio.
UOG elaborated that it took steps to refocus the company into a cash generative, low-risk production business in Egypt, complemented by high-impact exploration opportunities.
“We have re-focused the portfolio which offers attractive growth and investment opportunities. We enter 2022 with an asset base leveraged to the higher oil price environment and with a strong balance sheet which provide a platform for growth,” UOG’s CEO, Brian Larkin, noted.
“We have much to look forward to in 2022, with the five-well drilling campaign in Egypt which has had a great start with the successful ASD-2 development well and the recent spudding of the ASD-1X exploration well. In Jamaica the combination of support from our stakeholders in the form of a license extension and high oil price have re-invigorated the farmout campaign while in the UK, we are excited about the commercialization opportunities that the license containing the Maria discovery offers,” Larkin stated.