United Oil & Gas (UOG ) told investors that as of yesterday, the ASH-3 well in the Abu Sennan Licence in Egypt, in which the company holds a 22% working interest in, has been spudded. 
 
The ASH-3 well, located in the Abu Sennan Licence which is operated by Kuwait Energy Egypt, is a vertical well targeting the producing Alam El Bueib ("AEB") reservoirs at a depth of 3,600 to 3,950m in an area of the ASH field, up-dip of the ASH-2 production well.  
 
Since ASH-3 came onstream at the start of 2020, it has produced more than 1 million barrels to date (gross) with current rates of c. 4,500 barrels of oil per day on a 48/64" choke (gross). 
 
United said ASH-3 will be drilled by the EDC-50 rig, which has a history of drilling in the Western Desert. It is anticipated that the ASH-3 well will take up to 60 days to drill and test.  
 
The ASH-3 development well is the first to be drilled in the 2021 campaign and is to be funded from operational cash flow. Meanwhile, a second well is in the drilling pipeline. 
 
The second well will be the ASD-1X exploration well, targeting the Abu Roash reservoirs in the 4-way dip-closed Prospect D structure in the north of the Licence, close to the producing Al Jahraa field and if successful is capable of being brought into production quickly.  
 
Shares in United Oil & Gas have increased by 35% since the beginning of November 2020 to open 2.48% higher at 3.1p this morning following the announcement. 

UOG said the historic drilling success rate on the Licence is around 80%. The company now expects to update the market once the well has reached the target reservoirs.  
 
“There is clearly great potential in the ASH Field, and if the outstanding success that was achieved in the ASH-2 well can be replicated here, it will be a fantastic result for the joint venture partners,” commented United's Chief Executive Officer, Brian Larkin on the spud. 
 
He said, "It is equally pleasing for the joint venture to be back drilling in Egypt again, after the deferral of the majority of the 2020 drilling programme due to the low oil price environment, and we look forward to the drilling of further wells as part of our 2021 campaign, including the ASD-1X exploration well, that will follow after completion of ASH-3." 
 
Follow News & Updates from United Oil & Gas here: