United Oil & Gas has commenced spudding on the Italian Podere Gallina licence.
United Oil & Gas Plc, is delighted to announce that further to the update announcement of 24 October 2017, Po Valley Energy Ltd ("PVE"), the licence operator, has spudded (commenced drilling) the Podere Maiar well. It is understood that the well will take approximately 5 weeks to drill. Well-testing is planned in the case of success, and will be undertaken once drilling operations have been completed
Brian Larkin, CEO commented:
"We are extremely pleased that United's first well has been spudded. This will be an important milestone in the development of the Company.
United has a clear strategy of acquiring, developing and unlocking the value of low risk projects in Europe, while seeking high impact exploration opportunities in Africa and Latin America. This first well is an important step in implementing that strategy."
Podere Gallina Project (Italy)
On 4 May 2017, UOG and Po Valley Operations Pty Ltd ("PVO"), a company incorporated and registered in Australia, a wholly owned subsidiary of Po Valley Energy Ltd ("PVE"), entered into the Podere Gallina Farm-in Agreement ("Farm-in Agreement"), pursuant to which PVO conditionally agreed to sell to UOG, a 20 per cent. interest in the Podere Gallina Exploration Licence held by PVE and awarded by the Ministry of Economic Development (the "Ministry") on 2 December 2008 (the "Exploration Licence"), and which includes the Podere Maiar-1 exploration well.
The principal condition of the Farm-in Agreement was that UOG raise a minimum of £3 million. Accordingly, having completed a placing at the time of re-admission on 31 July 2017, the Farm-in Agreement is now unconditional.
Pursuant to the Farm-in Agreement, UOG has a 20 per cent. working interest in the Exploration Licence on funding 40 per cent. of the cost of the Podere Maiar appraisal well that is scheduled to be drilled in Q4 2017. PVE, which was awarded the Exploration Licence in September 2008, is the licence operator and has an 80 per cent. working interest in the Exploration Licence.