United Oil & Gas moves into production with Rockhopper acquisition

UOG has bought Rockhopper Exploration’s Egyptian asset portfolio, which will deliver United’s first production operation along with further development and exploration upside.
It constitutes a reverse takeover and United is paying US$16mln to acquire the Egyptian assets with the deal partially supported by a financing deal with BP, which will provide US$8mln, along with a share placing to investors and a US$5mln issue of equity to Rockhopper.
Upon completion, the Abu Sennan concession is yielding around 1,700 barrels oil equivalent per day net to United – which is nearly double the rate at the time that the deal was agreed.
The underlying operation producing around 7,900 boepd – thanks to the recent addition of a new well (ASH-2).
ASH-2 alone, in December, achieved a rate of 7,027 boepd during testing and it has been onstream, producing more than 3,000 boepd since the start of January. Another new well, El Salmiya-5, was spudded in early February and it is targeting multiple reservoirs.
El Salmiya-5 is one of four fully funded well that are being drilled within the Abu Sennan concession this year.
In Jamaica, the Walton Morant/Colibri prospect is estimated to contain 229mln barrels of prospective resources.
Tullow extended ‘drill or drop’ deadline to July as joint farm-out talks progress with ‘interested parties’. A new partner would support funding for the first well, which was originally pencilled in 2020 (now presumably subject to any deal timeline).
Selva in Italy is scheduled to begin production in 2020 at a targeted rate of 150,000 cubic metres of gas per day, which it will deliver significant cash flow to United says the company.
Awarded four blocks in the Central North Sea in 31st licensing round that includes the Zeta prospect, which United estimates could contain over 90 million barrels of in-place oil.
UOG recently agreed the sale of the Crown Discovery assets in the North Sea for US$5mln.


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