United Oil & Gas Plc (AIM: "UOG"), is pleased to provide a technical and operational overview on the Walton Morant Licence offshore Jamaica. This detail follows the Company's recent announcement confirming an early two-year licence extension to 31 January 2028, and renewed momentum in the farm-out process with multiple parties now under NDA.
Operational and Economic Highlights:
- Early two-year licence extension to 31 January 2028
- Multiple parties under NDA and farm-out process advancing
- c. 7 billion¹ barrels of potential unrisked prospective resources
- c.$8.5/bbl¹ estimated development cost and c. $25/bbl¹ breakeven in success case
- United's Internal estimate NPV10 of c. $23 billion based on Gaffney Cline 2.4 billion unrisked mean prospective resource (at $80/bbl oil, 2% inflation)
- Attractive fiscal terms Work programme permitting underway
- Strong government support
Farm-Out Process and Industry Engagement
United have re-engaged with selected parties who had previously expressed interest before the farm-out process was suspended in December 2024, as well as new interest from additional groups. At present, multiple companies are under Non-Disclosure Agreements (NDAs) and actively reviewing data as part of the farm-out process. Further updates on the farm-out process and technical progress will be provided
Jamaica: A Unique Frontier Oil & Gas Opportunity
Jamaica represents one of the last great frontier exploration opportunities globally. The Walton-Morant Licence is a world-class asset, comparable in scale and geological potential to ExxonMobil's prolific Stabroek Block in Guyana, where over 11 billion barrels of recoverable oil have been discovered. Like Stabroek, Walton Morant features large structural traps with high-quality reservoir potential but remains substantially underexplored, presenting a compelling investment opportunity.
The Walton-Morant Block: A Transformational Exploration Opportunity
The 22,400km² Walton-Morant block hosts over 40 identified leads and prospects. Eleven of these have been independently verified by Gaffney-Cline in a Prospective Resources Report ("PRR"), collectively estimated to hold over 2.4 billion barrels of unrisked mean prospective resources. Internal estimates from UOG and previous operators indicate that licence's total exploration potential could exceed 7 billion barrels.
The licence comprises two distinct geological basins, each offering high-impact exploration potential.
Walton Basin:
- Several large, high-impact prospects including Colibri (406 MMbbl3), Oriole (220 MMbbl3), and Streamertail (221 MMbbl3).
- 29 leads and prospects including five PRR-certified.
- Potential upside exceeding 4 billion barrels1 identified across identified leads and prospects.
Morant Basin:
- Several high-impact structures, including Thunderball (603 MMbbl3) and Moonraker (323 MMbbl3).
- 11 leads identified to date on 2D seismic, including six PRR-certified leads.
- Potential upside exceeding 3 billion barrels1 across identified leads.
Key Licence Attributes:
- Vast Exploration Potential - over 40 identified leads and prospects, with combined unrisked prospective resources exceeding 7 billion barrels1.
- Globally Competitive Fiscal Terms supporting exploration and long-term investment.
- Access to 2,250km² of high-quality 3D seismic data, allowing detailed subsurface imaging to refine prospects and reduce exploration risk.
- Strong government support, providing clear regulatory processes to facilitate exploration and development activities.
Advancing the Farmout and Work Programme
UOG remains focused on securing a farmout agreement to unlock the full potential of the Walton Morant Licence, with multiple high-calibre industry players under NDA and evaluating the asset.
United's work programme is in the planning and permitting stage, focusing on further technical de-risking activities. This includes piston core sampling to enhance reservoir understanding, and reprocessing of existing seismic data to refine prospectivity across the licence.
Brian Larkin, CEO of United Oil & Gas, commented:
"With our early licence extension secured, we are pleased to present this technical and economic overview, highlighting the world-class exploration potential and compelling economics of the Walton Morant Licence.
With over 2.4 billion barrels independently certified prospective resources and internal estimates exceeding 7 billion barrels, this licence remains one of the most compelling, frontier exploration opportunities globally.
Strong renewed interest from multiple potential partners is clear validation of the scale and potential value of this licence. We remain focused on securing the right farm-out deal for our shareholders."