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Irish-led United Oil & Gas sees revenues and profit increase

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United Oil & Gas CEO Brian Larkin

United Oil & Gas CEO Brian Larkin

United Oil & Gas CEO Brian Larkin

Irish-led United Oil & Gas has seen revenue and profit increase in the first half of this year on the back of strong production and exploration success.

The company had three successful wells on Abu Sennan in Egypt and it reached a working interest production of 2,730 barrels of oil equivalent per day (BOEPD) in the six months to June 30.

Revenue was $10.2m (€8.75m) for the period, up from $2.4m in the same period last year. The 2020 period is from the completion of the Rockhopper Egypt acquisition on February 28 to June 30.

Profit after tax for the first half of this year was $2m, up from $1.8m in the corresponding period last year, according to interim results.

The company had a realised oil price of $63.10 a barrel, compared with $28.26 in the first half of 2020.

Cash collections in the six-month period were $8.2m, while operating costs were $4.61 per barrel of oil equivalent.

Following a portfolio review, United said it is refocusing “into a low-cost, low-risk production business in Egypt and the greater Mediterranean area complemented by selected high-impact exploration opportunities in the Caribbean and Latin America.”

The company had cash of $2m at the end of June.

Brian Larkin, CEO of United Oil & Gas, said: “During the first half of 2021 three successful wells were drilled on Abu Sennan and the company reached record working interest production of 2,730 BOEPD, delivering strong operational cashflow.

“The success that we enjoyed earlier in the year has led to two additional wells being added to the 2021 programme; the recent positive ASX-1X well and the new Al Jahraa 13 development well due to be drilled later this year.”

Mr Larkin said the company “is well placed to capitalise on new opportunities emerging across the industry, both organic and external”.

Since the end of June, United agreed to sell its Italian interests for €2.2m, as well as its UK Central North Sea licences for a consideration of up to £3.2m.

“[There is] quite a lot to look forward to in terms of organic growth, in addition to that we are also seeing potential M&A opportunities that are starting to look a bit more favourable than perhaps they did a year ago,” Mr Larkin said.

Mr Larkin established United Oil and Gas in 2015, after having worked for Irish explorers Providence Resources and Tullow Oil.

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