“We are delighted to be able to announce yet another positive result from the Abu Sennan licence,” said chief executive Brian Larkin.

United Oil & Gas (LON: UOG) announced the success of its latest development well, Al Jahraa-8 (AJ-8), at the Abu Sennan concession in Egypt.

The well encountered more than 40 metres of net oil pay across three reservoir units, of which around 30 metres were seen together for the Upper and Lower Bahariya reservoirs – this measure is significantly above the pre-drill expectations for the well.

AJ-8 is now being prepared for the testing, with each of the three units set to be assessed.

“We are delighted to be able to announce yet another positive result from the Abu Sennan licence,” said chief executive Brian Larkin. “This latest success from the AJ-8 development well will not only provide an uplift to our low-cost production base, but also demonstrates the deeper potential that exists within the Bahariya Formation targets.

“Encountering over 30m of net pay in the Bahariya Formations is significantly above our pre-drill expectations and will likely be targeted further in subsequent drilling campaigns.”

United also highlighted that an extra exploration well has now been added to the schedule. The well, referred to as ASX-1X, will be located some 11 kilometres from the successful ASD-1X well which discovered 22 metres of net oil pay and is now a producer.

ASD-1X is targeting multiple reservoirs and will be drilled by the rig that’s being demobilised from the AJ-8 well.

“The JV partners have discussed the upside potential on the Abu Sennan licence, both from the existing fields and the identified exploration targets, and it is great to have an additional exploration well added to the 2021 drilling schedule, funded from operating cashflow, showing the willingness of the JV partners to invest in unlocking that upside potential,” Larkin added.

“Although this is expected to be the final well of the 2021 campaign, discussions are continuing with partners on the longer-term plans for accessing the unrealised value at Abu Sennan, and we look forward to updating the markets on these plans in due course.”

United owns a 22% interest in Abu Sennan which in 2020 yielded some 2,195 barrels oil equivalent production per day.