United’s Egypt business, acquired in February, provided the catalyst for the first-half performance.
United Oil and Gas PLC (LON:UOG) interim results highlighted a successful period for the company, as its recently acquired Egyptian operations drive revenues.
Net production in the first half of 2020 averaged 1,975 barrels of oil equivalent per day, and, the company achieved a realised oil price of US$28.26 per barrel.
Boosted by success in the ASH-2 and ES-5 wells working interest production at the end of the half, June 30, was measured at 2,716 boepd.
The company generated US$2.4mln of group revenue and made a US$300,000 gross profit, and a US$1.8mln profit after tax.
Cash collections over the four months since the acquisition amounted to US$3.6mln and it ended the half with a cash balance of US$1.2mln.
“2020 has been successful for United, with integration of the Egypt assets which are delivering low cost, sustained production, material reserves growth and positive operating cash flow,” said Brian Larkin, United chief executive.
“Post period end we were also awarded operatorship and 100% ownership of the high impact Walton Morant exploration licence in Jamaica, we have strengthened the Board and we recently welcomed new institutional shareholders onto our register, all of which marks our arrival as a full cycle oil and gas company.”
Larkin added: “Looking ahead our focus remains on managing United in a responsible way as we allocate capital prudently and efficiently to grow the business.
“We are well placed to manage the challenges the industry is experiencing and to take advantage of an improvement in market conditions.”