Preliminary analysis of the ASD-1X exploration well has indicated that the well has encountered a combined total net oil pay of at least 22m across a number of reservoirs.
The ASD-1X well was the latest in a string of positive results for United in Egypt, and further underlines the significant growth potential of the Abu Sennan licence, said the broker.
In Italy, meanwhile, UOG announced that it has received full environmental approval from the Italian Government for the Selva gas field. Work will now commence preparing the gas field for the first production in mid-2022.
Incorporating these two bits of news, Cenkos now value the shares at 28.4p (previously 28p) with the uplifts also in the Core NAV (the discounted forecast future net cash flows from on-stream fields (Abu Sennan) and those fields due onstream (Selva).
The estimate does not include any incremental production from the ASD-1X exploration well, with the current share price offering very little value to the rest of United’s full-cycle portfolio.
Shares eased 1% to 4.95p.