Stockbroker Cenkos upped its valuation for United Oil & Gas PLC (LON:UOG) following its latest positive announcement out of Egypt.

On Tuesday, United’s partner Kuwait Energy submitted a notice of commercial discovery to the authorities. It comes as testing of the ASD-1X exploration well confirmed positive results.

The well encountered the lower Bahariya and Abu Roash C (ARC) reservoirs, and, performed positively in short term testing. In the Lower Bahariya reservoir, the well flowed at a maximum rate of 2,187 barrels oil equivalent per day (boepd) meanwhile the ARC reservoir measured a maximum rate of 1,489 boepd.

READ: United confirms ASD-1X as a new discovery

United highlighted that the headline results exceed the company’s own internal expectations.

In a note, Cenkos analyst James Mccormack said: “The results further underline the remaining potential of the Abu Sennan concession and mark the fourth consecutive positive well result for United since acquiring its 22% interest in the licence in February 2019.

“We update our valuation, increasing our core NAV and risked exploration NAV to 5.6p and 28.9p, respectively.”

Either valuation suggests substantial upside to United’s current share price of 5.2p.