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United Oil & Gas PLC: Colter appraisal well results

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Oilfield Technology,

United Oil & Gas Plc, the London Stock Exchange listed oil and gas exploration and development company, has provided the following update on the Colter appraisal well, currently being drilled by Corallian Energy Limited (‘Corallian’) in the P1918 licence in the Wessex Basin. United holds a 10% interest in the licence.

The Colter well (98/11a-6) has been drilled as a vertical well with the Ensco-72 jack-up rig and has reached a Total Depth of 1870 m MD in the Sherwood Sandstone. The Well is an appraisal of the 98/11-3 well, drilled in 1986 by British Gas, within the Colter Prospect.

The 98/11a-6 well unexpectedly remained on the southern side of the Colter Prospect bounding fault but encountered oil and gas shows over a 9.4 m interval at the top of the Sherwood Sandstone reservoir, a separate discovery to the original appraisal target. A petrophysical evaluation of the LWD data has calculated a net pay of 3 m. Similar indications of oil and gas were encountered in the 98/11-1 well, drilled in 1983 by British Gas, within the Colter South fault terrace.

Provisional analysis of the new data indicates that the two wells may a share a common oil-water-contact having both intersected the down-dip margin of the Colter South prospect. Corallian’s most recent assessment of the Colter South Prospect prior to drilling the 98/11a-6 well had estimated a mean recoverable volume of 15 million bbls. Further work will be required to refine this assessment with the new well data.

The joint venture has commenced preparations to side-track the 98/11a-6 well. The side-track will be drilled directionally to a Sherwood Sandstone target within the Colter prospect on the northern side of the bounding fault and will take approximately two weeks to complete.

United Oil & Gas PLC CEO, Brian Larkin, said: “Initial results from Colter have delivered a bonus in the form of an additional hydrocarbon structure, which has excellent initial oil and gas shows. This offers opportunity for future appraisal and to increase the overall value of the Colter licence for our shareholders. More work will be required to determine the resource potential within the structure, and we will update shareholders on the outcome of the side-track well in the coming weeks.”

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