United Oil & Gas Kicks Off ‘Exciting’ 2019 with Key Milestone for Italian Gas Project
United Oil & Gas Plc (LON:UOG) told investors it has received preliminary regulatory approval for a production concession in Italy, opening up the Selva gas field development project.
The company, which owns 20% of the project, believes the asset will deliver significant cash flow in 2020.
Selva is located in close proximity to gas infrastructure, less than one kilometres to the grid, and, gross production is targeted at up to 5.3mln cubic feet per day (150,000 cubic metres per day).
A significant gas discovery was declared at Selva around a year ago, when the Podere Maiar-1d appraisal/redevelopment well produced strong flow rates from testing operations.
Development plans anticipate the installation of a fully automated gas plant at the existing Selva/Podere Maiar-1d well site, and a one-kilometre pipeline to the nearby grid connection.
Further exploration, aided by 3D seismic, could lead to the drilling of additional wells which could add resources and potential new sources of gas for the project.
“The preliminary award of the Selva production licence is a key regulatory milestone in advancing Selva towards production,” said Brian Larkin, United Oil & Gas chief executive.
“It is also a significant milestone for United as commercial gas production at Selva is expected to generate significant cash flow for the company from 2020 onward.”
Larkin added: “As well as progressing with the development, we are also excited by the upcoming 3D seismic acquisition in the licence, which will focus on proving up the huge potential of the wider licence area.
“Subject to successful results from this acquisition programme, additional wells will be drilled, aiming to significantly increase the overall resource base within the Selva concession.”
The United chief, meanwhile, highlighted that the Italian milestone represented a kick off to “an exciting year” for the growing company.
Moreover, he detailed a number of possible share price catalysts that could emerge in the coming weeks.
“In Q1 2019, shareholders can expect the imminent spudding of the Colter well in the Wessex Basin as well as the near-term publication of a series of CPRs including updated volumetrics for our Crown Oil Discovery in the North Sea and the Waddock Cross Field in the Wessex Basin and also for both our large, high-impact, offshore Jamaican licence and Podere Gallina in Italy.”
Source: www.proactiveinvestors.co.uk
