United Oil & Gas Plc (LON:UOG) is continuing to evaluate new opportunities following a busy year which saw the explorer acquire five new licenses expanding its portfolio into Jamaica, as well as operations in Italy and the UK.
In a statement to be delivered at today’s annual general meeting, the AIM-listed company’s chief executive officer Brian Larkin said: "Shareholders can expect more of the same in the year ahead, as we work with our partners to bring the commercial gas discovery in Italy into production; drill at least one well in the UK; and de-risk the company-making prospectivity, offshore Jamaica.”
He added: “In tandem with this, we continue to evaluate new opportunities which match our investment criteria as we look to deliver on our objective to expose our shareholders to a growing pipeline of near-term opportunities with significant re-rating potential.”
The CEO said: “The common thread that connects all of our licences is that they each have a clear line of sight towards near-term, high-impact activity centred on unlocking untapped value. Our focus is to expose our shareholders to multiple opportunities with significant re-rating potential.”
He added: “Already, our portfolio has benefited from one such opportunity at the Podere Gallina licence in the Po Valley, Italy."
The CEE pointed out: “Strong gas flows in testing subsequently confirmed a significant commercial discovery had been made. With mid-case gross recoverable volumes estimated at 525MScm (~18Bcf / 3mmboe), we, along with our partners, are keen to monetise this discovery as soon as possible”.
United’s boss also noted that later this year, in the UK, a well is planned to be drilled targeting the Colter Discovery in the Wessex Basin, while work also continues at the Waddock Cross Field with a view to drilling a well in the first-half of 2019.
Jamaica "high risk and high reward exploration"
Larkin added: "While our licences in the UK and Italy tick the development and appraisal box, our 20% interest in the Tullow Oil-operated Walton Morant licence, offshore Jamaica, provides us with exposure to high risk and high reward exploration with huge re-rating potential.”
The CEO noted that, covering an area of 32,000 square kilometres, the Jamaica licence “holds multiple plays and prospects in three separate basins, including the high-grade 200mmbbls Colibri prospect.”
He said that. following the acquisition of 2,250km2 3D seismic data over an area of the licence that covers Colibri in May 2018, the acquired data is currently being processed and interpreted ahead of a drill-or-drop decision in 2019.
Larkin concluded: “The last twelve months have been a highly active, successful and rewarding period for United.”