United Oil & Gas Plc

Update on Podere Maiar

 

United Oil & Gas Plc (“UOG”, “United” or the “Company”) the London Stock Exchange listed oil and gas exploration and development company, notes that Po Valley Energy Limited (“PVE” or “Po Valley”), the operator on the Podere Maiar 1 (“PM1”) well on the Selva Gas Field in the Podere Gallina licence – in which United has a 20% interest – have today made an announcement relating to significant gas flows.

Significant Italian gas discovery confirmed

Strong gas flows on test have confirmed a significant commercial discovery for United Oil & Gas Plc at its Selva gas field in northern Italy.

The Company announces today that PVE have reported that the strong gas flows have resulted from successful flow testing of the recently drilled Podere Maiar 1dir exploration well on the Selva gas field within the Podere Gallina Exploration licence in northern Italy (PVE 63% Operator; United Oil & Gas Plc 20%; Prospex Oil & Gas Plc 17%).

That drill program intersected two identified gas reservoirs, C1 and C2, in the Medium-Upper Pliocene sands of the Porto Garibaldi Formation.

The thickest level C2 (net pay 25.5 m) reported a peak flow rate of 148,136 scm/day on a 3/8 inch choke and a pressure differential of 11 bar with no water production.  Pressure recovery to formation pressure occurred in 2 minutes.  The higher level C1 (net pay 15.5 m) also reported strong flow test results with a peak flow rate of 129,658 scm/day on a 3/8 inch choke with good pressure recovery (about 12 minutes).

 

Table 1: Flow test results C2 level 1282.5m – static well head pressure 123.0 bara

Choke Flow rate Flowing well head pressure
1/8 inch 17,850 scm/day 122.8 bara
2/8 inch 66,000 scm/day 120.7 bara
18/64 inch 80,700 scm/day 119.5 bara
3/8 inch 148,136 scm/day 111.9 bara

 

Table 2: Flow test results C1 level 1253.5m – static well head pressure 119.7 bara

Choke Flow rate Flowing well head pressure
1/8 inch 14,348 scm/day 119.3 bara
1/4 inch 64,475 scm/day 115.0 bara
18/64 inch 77,351 scm/day 113.7 bara
3/8 inch 129,658 scm/day 105.1 bara

 

The strong flow rates from two gas bearing levels 99.1% methane gas content and the well’s 600m proximity to the Italian national gas grid pipeline connection, clearly make the Podere Maiar 1 dir well a commercial discovery.  As Operator, Po Valley will now prepare and submit a production concession application to the Italian Ministry, in the first half of 2018. The Ministry has been formally informed of the discovery and officials attended the successful test.

United Oil & Gas Plc, Brian Larkin:

“We are delighted to announce a commercial discovery on our Italian well. This result is a significant development milestone for our business. The flow test results exceeded our pre-drill expectations and we are now on the road to production. Po Valley will now incorporate this well-test data into the development plan and submit it as part of the application to the Italian authorities to convert a portion of the existing “Exploration Licence” into an “Exploitation Licence.”

“We will continue to keep markets updated on potential deal flow along with operational portfolio developments.”

This announcement contains inside information for the purposes of Article 7 of Regulation (EU) 596/2014

For more information please visit the Company’s website at www.uogplc.com or contact:

 

United Oil & Gas Plc (Company)
Brian Larkin brian.larkin@uogplc.com
Optiva Securities Limited (Broker)
Christian Dennis +44 (0) 20 3137 1902
Beaumont Cornish Limited (Financial Adviser)
Roland Cornish and Felicity Geidt +44 (0) 20 7628 3396
Murray (PR Advisor) +353 (0) 87 6909735
Joe Heron jheron@murrayconsultants.ie

Editor’s Note:

United Oil & Gas plc (UOG) is listed on the main market of the London Stock Exchange.  UOG was established to explore, appraise and develop low risk assets in Europe and North Africa and to develop higher risk, higher impact exploration projects in Latin America and Africa.

The following table outlines the Company’s current licences:

 

Country Licence Operator United Holding
Italy Podere Gallina Licence Po Valley Energy 20%
United Kingdom Waddock Cross Field Egdon Oil Plc 26.25%
United Kingdom PL090 Exploration Egdon Oil Plc 18.95%
United Kingdom P1918* Corallian 10%**
United Kingdom PEDL 330 Corallian 10%**
United Kingdom PEDL 345 Corallian 10%**
Jamaica Walton-Morant Tullow Oil plc 20%

*Offshore

** Option to acquire a further 10%