Independent producer United Oil & Gas PLC saw its revenue for the first half of 2023 fall to $6.4 billion from $9.9 billion in the year-ago period, hit by difficulties at its Egyptian operations, the company said.
Egypt’s average realized oil price per barrel in the first half was approximately $78, compared to $105 in the first half of 2022, United Oil said, adding that “the continued impact of macroeconomic challenges affecting the Egyptian economy has resulted in increasing difficulty and foreign exchange cost to repatriate funds from our Egyptian operations.”
The company added that it incurred significant additional foreign exchange costs in translating Egyptian pounds into US dollars for its working capital needs. “Despite these short-term challenges due to reduced USD liquidity in Egypt, we continue to manage our working capital position across the group,” United Oil said.
United Oil has a 22% non-operating interest in the Abu Sennan license, located in the Western Desert west of Cairo, Egypt. The license, operated by Kuwait Energy Egypt, consists of eight development concessions, each containing a production field, as well as an exploration license of 158,136 acres (644 square kilometers). The asset produced 1,312 barrels of oil equivalent per day (boed) in 2022, according to the company’s website. Net of United Oil’s working interest, oil production during the first half of 2023 averaged 1,051 barrels per day, with 93 boed of net gas, United Oil said in a news release.
In Jamaica, United Oil has a 100% interest in the Walton-Morant offshore exploration license, an area of 8,649 square miles (22,400 square kilometers) estimated to have more than 2.4 billion barrels of average unrisked potential resources.
United Oil had originally set the end of the first half of 2023 as a deadline for potential partners for a Walton-Morant drilling project. The company said it was “encouraged by the number and quality of companies that are in the process of completing their assessments, and because they have requested additional time, we have agreed to extend the deadline.” It is now seeking a commitment to drill a well by the end of January 2024.
“We have had a strong start to the first half of the year with our Egyptian drilling program with two successful development wells operating and positive results from our low-cost workover program,” said United Oil CEO Brian Larkin. its time.”
“At the same time, we remain focused on securing a partner in Jamaica for this potentially transformative license and are delighted to have multiple quality potential partners moving forward in their evaluation of the project. We look forward to the remainder of the year and updating our shareholders on our progress,” concluded Larkin.
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