United Oil & Gas PLC chief executive Brian Larkin highlighted exceptional operational and financial success in the first half of 2021.
In a trading update, ahead of results due in September, the company said that production averaged 2,937 barrels oil equivalent per day (boepd), beating guidance for 2,300 to 2,700 boepd, and marking a 17% improvement against the preceding half-year period.
Revenue for the first half of 2021 is anticipated to land between US$10.3mln to US$10.5mln.
"Through execution of our planned work programme, the first half of 2021 has produced exceptional operational and financial success,” said chief executive Brian Larkin. “In addition, we have created significant new opportunities as well as reinforced the balance sheet strength of the company.”
"In particular, our Egyptian assets continue to perform beyond expectations.”
Drilling activity in Egypt delivered results that exceeded the company’s expectations.
Larkin added: “through our H1 drilling programme, we have not only been able to increase production, but also identify new growth opportunities within the licence.
“Based on this success, we are delighted to be drilling a further exploration well on the licence shortly and are actively working with joint venture partners to agree the optimum long-term strategy for the development of the licence's potential.
"The outlook for the business remains encouraging and we remain well positioned for further success."
New drilling is presently planned with the ASX-1X well recently added on to the end of the current programme.
Talks with joint venture partners are ongoing to decide upon the 2022 drilling programme and the longer-term plans for accessing the significant long-term upside reserves and production potential of the Abu Sennan asset.
On the financial side, the company said it had US$2mln of cash at the end of June. During the six-month period it had total cash collections of around US$8.2mln whilst capex in the period amounted to US$3mln, including US$2.2mln spent on drilling activities.
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