StockMarketWire.com - Oil company United Oil & Gas said a well at a licence in Egypt in which it holds a 22% working interest had discovered oil.

Initial interpretations from the Al Jahraa-8 development well in the Abu Sennan concession onshore Egypt indicate a total of over 40 metres of net oil pay.

The oil was encountered cumulatively across three different reservoir units in a sidetrack well, after the initial hole was plugged back due to stability issues.

Preliminary results indicated over 30 metres of net pay in the upper and lower Bahariya reservoirs, significantly above pre-drill expectations.

The Abu Roash E reservoir also appears to have encountered net pay, in line with pre-drill expectations.

The discovery marked the fifth successful well in a row at Abu Sennan since United acquired its interest in the licence, the company said.




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