United Oil & Gas PLC‘s (LON:UOG) shares jumped as much as 11% after the AIM-quoted company unveiled a significant increase in reserves at the Abu Sennan concession, onshore Egypt.

Proved and probable (2P) reserves rose 24% to 16.8mln barrels of oil equivalent, from 13.5mln in early 2020, and gross proved (1P) reserves soared 59% to 6.7mln barrels of oil equivalent, according to an independent report by consultant Gaffney, Cline & Associates.

READ: United Oil & Gas confident as Egypt reserves rise 24%

“Following a string of successful wells, it’ll come as little surprise that UOG reports an uplift in reserves,” said SP Angel analyst Sam Wahab. “Nevertheless, the numbers reported today will have exceeded many expectations in our view.”

“UOG continues to maintain strong operational momentum following recent success at ASH-3 and ASD-1X, serving unlock significant new resource plays for the company and its partner.

“Shareholders will also be encouraged that the recent recovery in oil prices has significantly enhanced operational cashflows and improved the economics of additional development wells and there will be further drilling activity with the AJ-8 development well in the near term,” Wahab said.

The shares rose as high as 5.35p today, a three-year high, and were trading up 6.25% at 5.10p by late morning.

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