United Oil & Gas PLC ("UOG"), the growing oil and gas company with a portfolio of production, development, exploration and appraisal assets, is pleased to announce its audited results for the year ended 31 December 2020.
A shareholder call hosted by management will take place at 12.00pm BST today. Should investors wish to participate in the event, please click this link to register https://bit.ly/2S9mfow. A confirmation email with details of the dialling in process will be sent to your email address. A presentation and the 2020 Annual Report will be made available today on www.uogplc.com
Brian Larkin, Chief Executive Officer commented:
"2020 was a landmark year for United Oil and Gas, building on strong foundations to position ourselves as a full-cycle oil and gas company with strong production, diverse assets, an exceptional board and clearly defined avenues to deliver further material growth. These were significant achievements despite one of the toughest years for our sector and wider markets caused by the COVID-19 pandemic."
"Building on this success is key for all at United Oil and Gas and we look forward to driving further activity and material growth in 2021 and beyond."
Strategic - Completion of transformational acquisition, strengthening the Board and shareholder base
- Rockhopper Egypt acquisition completed following Egyptian Government approval including successful equity placing and re-admission of the enlarged Group to AIM
- Significant strengthening of the Board with the appointment of Ms Iman Hill and Tom Hickey as non-executive directors
- Establishment of Environmental, Social and Governance (ESG) Board Committee in September 2020 to drive forward the Group's commitment to operating responsibly
- Welcomed new institutional investors as a result of the successful placing of Rockhopper Exploration plc's 18.3% shareholding
Operational - Sustained low-cost production and reserves growth across portfolio
- Strong operational performance of Egyptian assets
- Group working interest production averaged 2,195 boepd
- Success at the ASH-2 and ES-5 Development Wells increased working interest production from 1,709 boepd on 1st March 2020 to 2,389 boepd on 31st December 2020
- Independent reserves report by Gaffney, Cline & Associates from the end of 2020 indicates a 24 % increase in Abu Sennan Gross 2P Reserves to 16.8 Mmboe, representing a 198 % reserves replacement ratio.
- Completion of ASH and Al Jahraa gas pipelines increasing environmental efficiency of the Abu Sennan licence and contributing an additional 312 boepd to United
- High impact Jamaican exploration assets secured and progressed during the period
- 100% equity stake and operatorship of the Walton Morant Licence in Jamaica along with 18- month extension secured.
- Prospective resources report on Jamaica by Gaffney Cline & Associates showing unrisked mean prospective resource potential of over 2.4 billion barrels assigned across 11 prospects and leads1
- New licence awards in the UK North Sea with of Blocks 15/18e and 15/19c containing the Maria, Brochel and Maol Discoveries in the UK's 32nd offshore licensing round.
Financial -Revenues delivering positive operating cashflow and profits
- Group Revenues of $9.1m*2
- Profit for the year of $0.85m
- Average realised oil price of $37.76/bbl and average realised gas price of $2.63/mmbtu*2
- Cash operating cost $5.77/boe2
- Cash capital expenditure $2.5m
- Cash generated from operation activities $4.8m
- Cash balance at 31 December 2020 $2.2m
* From completion of the Rockhopper Egypt acquisition to period end, 28th February 2020 to 31st December 2020
1 Summation made by UOG management based on the GaffneyCline analysis
2 22% interest net of government take
- Significant success at the ASH-3 Development Well which encountered 27.5m of net pay and tested at 7,720 boepd on 64/64 choke and 4,140 boepd on 30/64 choke
- Discovery at the ASD-1X Exploration well, which encountered a total of at least 22m net pay interpreted across a number of reservoirs
- Group working interest production year to date ahead of expectations; full year guidance raised to 2,500 to 2,700 boepd.
- Success of the ASH-3 and ASD-1X wells in early 2021 is likely to lead to a reserves uplift
- Group Capital Expenditure is forecast to be $6.0m, fully funded from existing assets
- c. $5.4m to be invested in Egypt with three firm wells following the addition of the AJ-8 well to the programme offset by savings on ASH-3 and AD1-X, five workovers, and facilities upgrades
- c. $0.6m to be invested in our Jamaican, Italian and UK assets
- Cash generation is expected to continue strongly throughout 2021 in line with increased production and pricing, particularly in the second half of the year as the capital expenditure associated with the drilling campaign is phased almost entirely in the first half
- The formal farm-out campaign for the Walton Morant licence in Jamaica commenced earlier this month and, following on from the Prospective resources report on Jamaica by Gaffney Cline & Associates, management look forward to discussing this opportunity with prospective partners.
- The Crown disposal milestone payment of $2.85m from Hibiscus, payable on approval of the Marigold development plan by the by the UK's Oil and Gas Authority, is currently expected to be received in the second quarter of 2021.
- Our portfolio provides a platform for organic growth but also a base from which we can consider further growth opportunities in 2021 and beyond.