United books $12.2mn profit for 2021

London-listed independent United Oil & Gas (UOG) reaped a $12.2mn gross profit for the 2021 calendar year, more than quadruple its $2.5mn income from the previous year.

UOG's core earnings rose to $13.6mn from $3.5mn on year/year, while its operating cash flow also rose significantly, climbing from $4.8mn to $9.1mn.

UOG's assets include its 100% interest at Maria field in block 16/29a in the UK Central North Sea and Abu Sennan in onshore Egypt, which contain 6.1mn barrels of oil equivalent in net 2C resources and 3mn boe in net 2P reserves respectively.

Regarding the North Sea, UOG said the region remained an "attractive investment" with adequate potential.  The company had taken steps to divest its least attractive central North Sea assets, and its Italian upstream holdings, in 2021, but now says the UK sale is postponed to allow it to evaluate "further commercialisation opportunities."

In Egypt, Abu Sennan averaged a production output of 2,327 boe/d in 2021, up from 2,195 boe/d in 2020. Five "successful" wells were drilled in the concession - including the commercial discoveries ASD-1X and AS1-1X - which resulted in the joint venture partners being awarded two 20-year development leases. UOG's current full-year guidance for Abu Sennan is 2,500 to 2,700 boe/d and 2,100 to 2,300 boe/d.

UOG also agreed a $2.5mn conditional sales and purchase agreement on March 3 with Prospex Energy's PXOG Marshall to offload its onshore Italy investment Podere Gallina, where it holds 20% non-operated interest.