Business
Operational & Corporate Update
Operational & Corporate Update.
About this update from United Oil & Gas Plc
[{"type":"text","content":"\n \n \n RNS Number : 5492I\n United Oil & Gas PLC\n 02 April 2020\n \n \n \n \n United Oil & Gas PLC / Index: AIM / Epic: UOG / Sector: Oil & Gas\n \n \n 2 April 2020\n \n \n United Oil & Gas PLC\n \n \n (\"United\" or the \"Company\")\n \n \n \n \n \n Operational & Corporate Update \n \n \n \n \n \n United Oil & Gas Plc (AIM: \"UOG\"), the AIM listed oil and gas exploration, development and production company, is pleased to provide an operational and corporate update to shareholders including the commencement of gas production at the Al Jahraa Field in the Company's 22%-owned Abu Sennan concession, onshore Egypt, and measures taken in response to the COVID-19 pandemic and ongoing oil-price volatility. \n \n \n Overview\n \n \n Egypt Update\n \n \n · \n Completion of low capital expenditure gas pipeline project at Al Jahraa\n \n \n · \n Production of gas and elimination of flaring increases gross production in Egypt to c. 8,400 boepd (c. 1,850 boepd net) - more than doubling the production compared to 12 months ago\n \n \n · \n All Egyptian production, including new gas supply, has positive operational cashflow, even at current low market prices\n \n \n o \n Low operating costs at Abu Sennan of around $6.5/bbl provide solid operating margins even at low price levels\n \n \n o \n The Company's pre-payment facility with BP provides downside price protection by effectively hedging 6,600 bbls of oil per month at $60/bbl for the next 30 months\n \n \n o \n c. 20% of United's net production is gas which is sold under a fixed contract that is relatively insensitive to oil-price changes \n \n \n · \n Drilling operations are continuing at the El Salmiyah 5 infill well within the El Salmiyah field \n \n \n Response to Market Conditions\n \n \n · \n Proactive measures taken by United and its partners to reduce near-term Capex commitments during current oil-price uncertainty and the impact of Covid-19 \n \n \n o \n Deferral of Italian Capex improves cash flow and moves expected first gas slightly to H1 2021 \n \n \n o \n Deferral of Egyptian Capex reduces 2020 infill campaign from 4 to 2 wells, significantly reducing gross 2020 Capex estimates. Further optimisation of the Capex and Opex budgets is being considered. \n \n \n o \n Completion...