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United Oil & Gas PLC - Update to PSA for Walton Morant Basin, Jamaica

RNS Number : 8474U
United Oil & Gas PLC
03 August 2020
 

3 August, 2020

 

United Oil & Gas PLC

('United' or 'UOG' or 'the Company')

 

Update to Production Sharing Agreement on the Walton Morant BasinJamaica

 

United Oil & Gas PLC (AIM: "UOG"),  the high growth oil and gas company with a portfolio of production, development and exploration and appraisal assets is pleased to announce that it has received approval from the Jamaican Government to take forward the Walton Morant Licence, Jamaica, on a 100% operated basis.

Highlights

·    United has been assigned Tullow Jamaica Ltd's 80% equity in the Walton Morant licence for a nominal fee, leaving the Company as operator and 100% equity holder

·    Initial Exploration Period extended for 18 months by the Government of Jamaica

·    Highly prospective frontier basin with compelling evidence for the presence of a working petroleum system

·    Work programme underway to further de-risk the Colibri prospect and other targets ahead of a drill decision

·    A farm-out process is ongoing, and with United now as operator, we look forward to taking full ownership of the process and driving it forward

·    The Colibri prospect has been independently estimated to contain gross unrisked mean prospective resources of 229 MMstb, and up to 513 MMstb in a high-case scenario

Following agreement with the Jamaican Government, Tullow Jamaica Ltd's 80% equity and operatorship has been transferred to United for a nominal fee, and the PSA has been amended to extend the Initial Exploration Period for 18 months. A portion of the licence has been voluntarily relinquished, leaving a more focussed area of c. 22,400km2 that still incorporates all of the identified prospectivity.

With the extension to the Initial Exploration Period, United now has until the 31st January 2022 before the drill-or-drop decision is required.

United plan to complete a work programme to further de-risk the high-graded Colibri prospect and perform detailed interpretation of the numerous follow-on targets, including Moonraker,Thunderball, Moneypenny, Jaws, Goldfinger, Vesper, Oriole, Earspot and Rumpspot.. This cost-effective activity will be informed by the feedback from companies who have engaged with United and the previous licence operator in the data room process to date.  It is believed this work will have a significant impact on the continuing farm-down process.

 

About the Walton Morant Licence

The amended Walton Morant Licence covers an area of 22,400km2, and has numerous plays and prospects already identified across three separate basins. 11 wells have been drilled to date (9 onshore, 2 offshore), and all bar one contained hydrocarbon shows.

United farmed in to the Walton Morant licence in 2017. Since then, significant seismic survey work has been carried out on the licence, including the acquisition and interpretation of 2,250km2 of 3D seismic data and the re-interpretation of 3,650km of existing 2D seismic data.   

Based on this new data, United invested in an updated independent Competent Persons Report for the licence in 2019.  This identified a total gross un-risked mean prospective resource of 229 MMstb on the Colibri Prospect alone. In high-case scenarios, the gross unrisked resource estimates for Colibri suggest up to 513 MMstb could be recovered. The Walton Morant licence covers an extensive area (c. 22,400km2) and numerous follow-up structures have been identified that would be significantly de-risked on success at Colibri.

It is estimated that United will have acquired the results of approximately $30m of investment by the previous operator in the licence. 

 

Brian Larkin CEO, United Oil and Gas PLC:

"Walton Morant has the potential to have a major impact on United Oil & Gas and we are delighted to have successfully concluded an agreement with the Jamaican Government to take on operatorship and to develop this licence for the benefit of all stakeholders. 

"The United team know this licence well, having worked on it for many years.  Our experience and understanding of the licence and conviction about it was critical to the Jamaican Government's decision to grant us operatorship, 100% interest, and an 18-month extension.  We are confident in the quality of this licence and in the opportunities that exist not only in the Colibri prospect, but across the full 22,400km2 area.

"We will move ahead with a cost-effective programme of activity, building on the significant work that Tullow and United had completed over the last two years and the feedback from a very active farm-down process.  Our goal will be to further de-risk the asset, bring in partners and move ahead to plan a well on the Colibri prospect. We would like to thank Tullow for their contribution as operator, and for their assistance in enabling the transfer. We would also like to thank MSET for their demonstration of confidence in United and we look forward to working with them in our new role as operator."

GLOSSARY

MMstb

means million stock tank barrels

 

 

prospective resources

means those quantities of petroleum estimated, as of a given date, to be potentially recoverable from undiscovered accumulations by application of future development projects. Prospective Resources have both an associated chance of discovery and a chance of development. They are further subdivided in accordance with the level of certainty associated with recoverable estimates assuming their discovery and development and may be sub-classified based on project maturity.

 

 

Jonathan Leather, an Executive Director of the Company, who has over 20 years of relevant experience in the oil and gas industry, has reviewed and approved the information contained in this announcement.  Dr Jonathan Leather is a qualified person as defined in the guidance note for Mining Oil & Gas Companies of the London Stock Exchange and is a member of the Petroleum Exploration Society of Great Britain and the Society of Petroleum Engineers

 

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 ("MAR").

 

ENDS

 

United Oil & Gas Plc (Company)

 

Brian Larkin, CEO

 

[email protected]

Beaumont Cornish Limited (Nominated Adviser)

 

Roland Cornish and Felicity Geidt

 

+44 (0) 20 7628 3396

Optiva Securities Limited (Joint Broker)

 

Christian Dennis

 

+44 (0) 20 3137 1902

Cenkos Securities Plc (Joint Broker)

 

Joe Nally (Corporate Broking)

Derrick Lee and Pete Lynch

 

 +44 (0) 20 7397 8900

+44 (0) 131 220 6939

Murray (PR Advisor)

+353 (0) 87 6909735

Joe Heron

 

[email protected]

Camarco (Financial PR/IR)

 

Billy Clegg

Georgia Edmonds
James Crothers  

 

+44 (0) 20 3757 4983

Notes to Editors

United Oil & Gas is a high growth oil and gas company with a portfolio of low-risk, cash generative production and development assets across Egypt, UK, Italy and a high impact exploration licence in Jamaica.

Led by an experienced management team with a strong track record of growing full cycle businesses and partnered with established industry players, the Company is well positioned  to deliver future growth through portfolio optimisation and targeted acquisitions.

United Oil & Gas is listed on the AIM market of the London Stock Exchange. For further information on United Oil and Gas please visit https://www.uogplc.com/ 

 


This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact [email protected] or visit www.rns.com.
 
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