United Oil & Gas (UOG) has produced from its interest in the Abu Sennan license an average of 1,312 barrels of oil equivalent per day (boe/d) in 2022 which came in line with the revised production guidance of 1,300-1,325 boe/d.
In a statement, the company said it is expecting a group revenues of about $16 million in 2022 generated from its interest in Abu Sennan and it will be announced after accounting the government entitlements under the production sharing contract.
According to UOG, the price of oil barrel in 2022 reached $96 per barrels compared to $68.90 per barrel in 2021.
The company added that it will work on developing the drilling and optimizing the existing wells in Abu Sennan during the H1of 2023 at low-cost work-overs expecting to achieve production of 700-900 barrels of oil per day (bbl/d).
It noted that the development drilling planned in the first half of the year has the potential to have a positive impact on production levels in H2.
In this regard, United Chief Executive Officer, Brian Larkin commented “Operationally 2022 was a very active year for the Company with an extensive work program executed in Egypt, generating good operational cashflow despite mixed drill results. Over the three years that United has held Abu Sennan, the production base has generated material cashflows for the business. As the asset matures, it is transitioning to a phase in its development where operations are focused on maintaining and extending long term production rates to generate operational cashflows for many years to come. Egypt remains an integral part of our business providing operational cashflow which supports the wider asset portfolio of the Company and our strategy to grow through M&A.”
“I am excited about the potential for the Company as the fundamentals of the business remain solid, and we remain committed to our growth ambitions with the focus on new ventures in the Greater Mediterranean and North Africa regions,” he added.