United Oil & Gas has announced that gas output from its Jahara field located in its Abu Sennan concession, onshore Egypt – where it owns 22% – has continued to increase and is helping to compensate for falling oil prices in the continuing global COVID-19 pandemic.
Production at the Al Jahraa field has doubled to 8,400 barrels of oil equivalent per day, with low operating costs of around $6.5 per barrel, resulting in solid operating margins even though the market currently has low prices. The company also recently completed gas pipeline at the field.
“The economic and political uncertainty created by Covid-19 and the current low oil prices have created considerable challenges for our industry,” said CEO of United Oil & Gas, Brian Larkin.
Together with its partners, United announced that it was taking proactive steps to minimize near-term capital expenditure obligations amid the Covid-19 pandemic and emerging oil price uncertainties.
United also added that it continues to make progress with ongoing drilling operations of an infill well, which is targeted at multiple undrained reservoirs at the El Salmiyah field.