StockMarketWire.com - United Oil & Gas and Reabold Resources said a sidetrack operation at the Colter well in the UK had delivered mixed results.

The purpose of the well was to delineate the Colter structure accurately to complement an existing well and seismic data in the area.

'Following completion of drilling, it has now been determined that the majority of the potential resource resides within the Colter South portion of the play,' Reabold said.

'Further work will now be undertaken to evaluate the resource size at Colter South incorporating this new data.'

'However, this also results in a smaller areal extent of the Colter feature north of the fault, which is unlikely to yield additional commercial volumes.

United Oil & Gas chief executive Brian Larkin said the appraisal campaign had delivered a new discovery and significantly increased the company's understanding of the Colter prospect.

'While we are obviously delighted by the discovery of Colter South, which with an estimated mean recoverable volume of 15 mmbbls is an exciting discovery and appears to have exceeded our pre-drill requirements for commerciality, Colter North has not delivered in the way that we would have hoped.'

'However, even this latest result has delivered some interesting additional data which points to further targets and prospectivity within the licence area.'

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