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United Oil and Gas reported a loss after tax of US$1.25 million for 2025, and closed the year with just US$1.67 million in cash. Their stock trades well below £1 per share (currently 0.22 GBX/share) on the London Exchange.
UOG’s primary asset is the massive Walton-Morant lease offshore Jamaica. The company’s future is dependent on finding a partner to fund an exploratory well. In that regard, UOG’s optimism has yet to result in a farmout deal after years of trying.
Absent a partner, UOG is promoting a drilling planning study, a very modest step forward in the drilling process:
“This drilling study marks an important step in our operational planning to advance the Walton-Morant Licence towards a potential future drilling programme. It will provide a current, market-based assessment of rig suitability, availability, commercial conditions, and the long-lead items required to drill Colibri and Thunderball or similar targets.
Colibri and Thunderball represent substantial exploration opportunities within the Licence, with a combined potential of over 1 billion barrels of mean prospective resources out of the 7 billion barrels of prospective resources identified on the licence to date.
By undertaking this study now, we are positioning the Company for operational readiness ahead of future drilling, whilst providing valuable information to support our on-going work as we push to conclude the Jamaican farm-out process. We look forward to updating the market with the study results in the coming weeks.”
Questions:
- After years of trying, UOG has yet to secure a farmout partner. Are their terms unreasonable or are other companies less optimistic about the production potential?
- Why has the Govt of Jamaica granted UOG multiple license extensions, the latest through 1/31/2028. Does the govt have that much confidence in a company with such limited financial resources?
- Should the Govt of Jamaica have allowed the license to expire and negotiated directly with larger companies?
- Was the govt concerned about administrative or political constraints associated with re-offering the massive license area?
I have been following this story for 5 years, and am still hopeful for a positive outcome for Jamaica.
Below are UOG’s resource assessments for the prospects in their license area.
| Name | Assignation | Location | Mean/Mid Prospective Resources (MMBo / MMboe) |
| Lead 11F | Lead | Walton Basin | 1126 |
| Zumbador | Lead | Morant Basin | 925 |
| Thunderball | Lead | Morant Basin | 603² |
| Colibri | Prospect | Walton Basin | 406² |
| Lead D | Lead | Walton Basin | 382 |
| Moonraker | Lead | Morant Basin | 323² |
| Cascade Central | Lead | Pedro Bank | 275 |
| Streamertail | Prospect | Walton Basin | 221² |
| Oriole | Prospect | Walton Basin | 220² |
| Boag | Lead | Walton Bank | 219 |
| Lead 6I | Lead | Walton Bank | 205 |
| Goldeneye | Lead | Morant Basin | 174² |
| Moneypenny | Lead | Morant Basin | 173² |
| Blofeld | Lead | Morant Basin | 171² |
| Earspot | Lead | Walton Bank | 145 |
| Squire | Lead | Walton Basin | 139 |
| Lead 12M | Lead | Walton Basin | 133 |
| Lead 6H | Lead | Walton Bank | 120 |
| Lead 12V | Lead | Walton Basin | 111 |
| Cascade South | Lead | Pedro Bank | 101 |
| Lead6Q | Lead | Walton Bank | 101 |
| Cascade East | Lead | Pedro Bank | 86 |
| Rumpspot | Lead | Walton Bank | 85 |
| Lead 7P | Lead | Walton Bank | 76 |
| Lead 7N | Lead | Walton Bank | 70 |
| Lead 10K | Lead | Walton Basin | 70 |
| Lead 12L | Lead | Walton Basin | 70 |
| Lead 7T | Lead | Walton Bank | 60 |
| Bluefields | Lead | Walton Bank | 57 |
| Tody | Prospect | Walton Bank | 53² |
| Mango | Lead | Walton Basin | 53 |
| Guani | Lead | Walton Bank | 53 |
| Lead 12U | Lead | Walton Basin | 41 |
| Jaws | Lead | Morant Basin | 39² |
| Euphonia | Prospect | Walton Bank | 38² |
| Lead 6G | Lead | Walton Bank | 38 |
| Booby | Lead | Walton Basin | 34 |
| Lead 10B | Lead | Walton Basin | 32 |
| Lead 7R | Lead | Walton Bank | 28 |
| Lead 7S | Lead | Walton Bank | 28 |
| TOTAL | 7,284¹ |
Posted in energy policy, Jamaica, Offshore Energy - General | Tagged drilling study, farmout, Jamaica, license extenstions, United Oil and Gas, Walton Morant License | Leave a Comment »
As suspected, the rejection of LLOG’s Sale BBG2 bid for Keathley Canyon Block 828 has been appealed. This is an interesting case because KC 828 is part of LLOG’s Buckskin field. The block had been previously leased, but that lease expired on 9/3/2025.
We assume the lease expired due to inactivity given that the last well reached total depth more than a year prior to the expiration date. LLOG wanted to reacquire the lease back, but BOEM’s valuation was 20 times higher than LLOG’s bid. It’s also interesting that no other company submitted a bid. Did no one want a lease in an established field? BOEM valued this block far higher than any other block in the sale.
LLOG’s letter of appeal is not publicly available. Below is the summary blurb from the Serial Register Page:
By letter dated May 27, 2026, LLOG Exploration Offshore, L.L.C. appealed the Bureau of Ocean Energy Management’s (BOEM) decision for OCS-G 38173, covering all of Block 828, Keathley Canyon. LLOG Exploration Offshore, L.L.C. is requesting reconsideration of the rejection decision. The Adjudication Section received the written request and statement of reasons within the 15 days of the rejection decision, on May 28, 2026.
According to the applicable regulation, the BOEM/MMA Director is the deciding officer and the decision is not subject to appeal to the Interior Board of Land Appeals. The rejection seems rather straightforward under BOEM’s bid evaluation policies, but perhaps there is much more to the story.
Posted in energy policy, Gulf of Mexico, Offshore Energy - General, Regulation | Tagged appeal, Block 828, Buckskin field, Keathley Canyon, Lease Sale BBG2, LLOG, rejected bid | Leave a Comment »
Our guy in Scotland, JL Daeschler, reminds Sunday Times readers that the UK can’t simply summon the return of the long neglected North Sea oil industry.
The editors deleted this sentence from JL’s letter: “Thank you Norway and USA for supplying us energy.” 😉
Compare Norway and UK management of their North Sea resources. The UK govt still hasn’t even made the clear and obvious decision to approve Jackdaw and Rosebank production.
The West of Shetland area has high oil and gas resource potential. Researchers at the University of Aberdeen are advocating a tailored management system to facilitate development.
Posted in energy policy, Norway, Offshore Energy - General, UK | Tagged Jackdaw field, JL Daeschler, North Sea, resource management, Rosebank, UK energy policy, Univ. of Aberdeen | Leave a Comment »
Twenty Members of Congress (17 from California) filed the attached amicus brief in support of California’s challenge to the use of the Defense Production Act (DPA) to facilitate the restart of production at the Santa Ynez Unit (SYU) in the Santa Barbara Channel.
Per their filing:
“This case is not about national defense. It is about a heavily leveraged, crude oil company asking the President to transform the DPA from a statute designed to“assure the availability of domestic energy supplies for national defense needs,” 50 U.S.C. § 4502(a)(5), into a corporate rescue operation for political allies; a rescue that advances the Administration’s political preference for fossil-fuel development at the expense of all other concerns. The Department of Energy’s (“DOE”) March 13, 2026 order (the “Wright Order”) comes nowhere close to identifying a need for Sable crude oil or pipelines in the Order’s generalized invocation of California’s military presence and increased reliance on foreign crude.”
Comments:
- The brief includes no new arguments or information.
- Is it not disingenuous to raise concerns about Sable’s financing when these critics and their allies spent a decade blocking Exxon, one of the world’s strongest companies, from restarting SYU production? Exxon’s frustration led to the ownership transfer to Sable, even though Exxon could still be held liable for some obligations, most notably decommissioning.
- Given the conflict-driven turmoil in the energy markets and the risk of shortages affecting military operations, how is it a stretch to issue a DPA order directing the restart of an important onshore pipeline?
- A Federal judge for the Central District of California has already opined that the DPA is a “significant statutory grant of authority to the executive, giving the President substantial discretionary power to compel private industry, allocate resources, and incentivize domestic production for national defense.”
- With oil prices soaring, this is a bad time to attempt to halt a 20+% increase in California oil production.
Posted in California, energy policy, Offshore Energy - General, pipelines, Regulation | Tagged 20 members of congress, amicus brief, Defense Production Act, Exxon, pipeline restart, Sable Offshore, Santa Ynez Unit | 2 Comments »
Two particularly troubling examples of decisions that threatened long-term US offshore production and national security, and endorsed higher oil prices:
Sale 257 court ruling: In 2022, a Federal judge ruled in favor of higher oil prices. In response to an OCS Sale 257 lawsuit, the judge agreed with the NGO plaintiffs that BOEM failed to consider the “positive” effect that higher prices (the logical result of lower production) would have on reducing demand. In particular, the plaintiffs asserted that BOEM failed to consider the effect that reduced production (and higher prices) would have on foreign consumption and the associated GHG emissions.
The judge not only decided in favor of the plaintiffs, but ruled that BOEM’s omission was so serious that the lease sale had to be vacated. The judge’s decision was subsequently overturned by legislative action.
OCS Leasing Policy: The official leasing policy, as articulated in the 2024-2029 OCS Leasing Program (published 9/2023), was to phase out oil and gas production:
The long-term nature of OCS oil and gas development, such that production on a lease may not begin for a decade or more after lease issuance and can continue for decades, makes consideration of net-zero pathways relevant to the Secretary’s determinations on how the National OCS Program best meets the Nation’s energy needs. (p. 6, 2024-2029 Leasing Program)
The Leasing Program prioritized “net-zero pathways” over cost and national security considerations. The clear objective was to prevent new production. Absent legislative action, we would have had a 5 year leasing plan with no lease sales!
Posted in climate, energy policy, Gulf of Mexico, Offshore Energy - General, Regulation | Tagged 2024-2029 leasing program, 9/11, energy security, net zero, oil prices, Sale 257 litigation | Leave a Comment »
Arena Energy CEO Mike Minarovic: “We are ‘all in’ on the future of the shallow water Gulf of America. The Shelf still holds vast potential, and the WFD 450 gives Arena the reach to unlock proved reserves that no other rig in the Gulf could access.”
The WFD 450 drilling rig, the deepest water depth rated jack-up operating in the Gulf, is conducting a multi-well drilling program for Arena following a $65 million refurbishment program.
Built in 1999 and formerly operated by Valaris, the rig was cold-stacked in the Gulf for seven years prior to White Fleet’s acquisition. The upgraded rig was christened on January 9, 2026, and began drilling operations in late March.
The WFD 450 can drill in water depths up to 400 feet and to total depths of 30,000 feet — capabilities that give Arena access to resources previously beyond the reach of the Gulf’s rig fleet. That reach is expected to unlock significant new production from proved reserves that had remained undeveloped due to equipment constraints.
The Borehole File indicates that Arena has drilled 4 development wells in Eugene Island Area Blocks 315 (231′ water depth) and 325 (252′ water depth) since the rig’s March restart. Two of those wells were completed for production.
Arena has also completed 3 wells in shallower water (138′) in the Main Pass area in 2026.
Cantium, the other active shelf operator, has completed 5 wells this year in very shallow water (50-58′). No other company has conducted drilling operations on the shelf this year.
Arena produced 8,266,036 bbls of oil and 21,079,794 Mcf of gas in 2025, making the company the number one shelf producer of both commodities.
Cantium produced 5,444,651 bbls of oil and 6,716,670 Mcf of gas in 2025.
Posted in drilling, energy policy, Gulf of Mexico, Offshore Energy - General | Tagged Arena Energy, Cantium, Gulf of America, jackup rig, shelf, White Fleet Drilling | Leave a Comment »
Politico is reporting that Michael Olsen has been selected to head the Marine Minerals Administration (MMA), following Matt Giacona’s departure for a position in Halliburton.
I’m not aware of any backstory behind Matt Giacona’s departure. He was well regarded and was providing strong leadership as Acting Director of the consolidated offshore energy bureau.
Managing the offshore program is very difficult and administratively complex, with acrimony and litigation around every corner. Less stress and (presumably) more money may have made the Halliburton opportunity attractive. Best wishes to Matt in his new position!
Mike Olsen has served in a number of positions in Interior and reports have been favorable. BOE wishes him well in leading this nationally important bureau.
Posted in energy policy, Offshore Energy - General, Regulation | Tagged Halliburton, Marine Minerals Administration, Matt Giacona, Michael Olsen, US Dept. of the Interior | Leave a Comment »
Attached is the final version of AB 1448, which is among the stack of bills awaiting Gov. Newsome’s signature. John Smith has highlighted provisions of concern.
If enacted and upheld in the courts, the bill would serve as a blockade on new Outer Continental Shelf (OCS) production. The bill would:
- prohibit pipelines and other infrastructure located within state waters from being used to support Pacific Outer Continental Shelf (OCS) leases issued after January 1, 2026.
- prohibit the State Lands Commission from entering into any lease authorizing new construction of oil- and gas-related infrastructure within state waters for the purpose of supporting Pacific OCS leases issued after January 1, 2026.
- prohibit any existing leases and oil- and gas-related infrastructure located within state waters from being used to support Pacific OCS leases issued after January 1, 2026.
- require a separate process for the approval of any lease extension that would increase the volume of oil and gas transported across state waters “including by commencing, increasing, intensifying, or restarting production” from the OCS. This would presumably include pipelines transporting Santa Ynez Unit production and production increases at other OCS facilities.
It’s hard to believe these provisions would survive legal challenges given their constraint on interstate commerce and Federal OCS activities.
On a related note, California royalty owners are actively challenging Santa Barbara County and Los Angeles proposals that would prohibit new oil and gas wells and ultimately phase out all existing production. AB 1448 would have a similar effect on OCS royalty owners – namely the citizens of the United States.
Posted in California, energy policy, Offshore Energy - General, pipelines | Tagged AB 1448, blockade, California, John B Smith, mineral royalties, NARO, OCS production, pipelines, Santa Ynez Unit, State waters | Leave a Comment »
Ken Arnold, NAE, contributed greatly to the responsible development of offshore oil and gas resources. Among Ken’s achievements – lead engineer for a major offshore operator, entrepreneur who founded a successful engineering and management company, author of production textbooks, distinguished SPE lecturer and university instructor, NASEM Marine Board member, and safety leader who participated in the development of OCS regulations and standards.
Ken explains how his new engineering company was involved in the Gulf’s first “Rigs to Reactors” initiative:
My first job as Paragon Engineering Services was to advise Westinghouse on the ability of their yard in Jacksonville, FL to fabricate offshore jackups.
They had built a total facility with acres under roof, a huge drydock, and the biggest gantry crane in the US to fabricate large nuclear reactor vessels which stood on top of a barge hull which contained all the equipment necessary for a power plant. They had an order for, I think, 12 of these units. The plant was designed to complete one a year through an assembly line type of process. The facility was approved by Nuclear Regulatory Agency, and others. The piping model of the barge hull (this was in 1980 before we had 3-D models and large complex facilities were often constructed in scaled plastic) had a footprint as big as my house.
The goal was to make identical units which would be floated to a shore-based site where it would be sunk and protected from waves, etc.
Then came Three Mile Island and all orders were canceled.
Ken recalls further:
They eventually decided not to get into the rig fabrication business. The only thing I know of which was ever fabricated in the huge fab building was some cars for a ride at Disney World. I drove by the site many years later and the gantry crane was gone and it had been turned into a container port. I am not sure what happened to the huge drydock.
Posted in energy policy, Gulf of Mexico, Uncategorized | Tagged Ken Arnold, Offshore nuclear plants, Paragon Engineering Services, Rigs-to-Reactors, Three Mile Island, Westinghouse | Leave a Comment »
On Labor Day 2026, BOE is proud to salute the thousands of dedicated offshore professionals, in the US and around the world, who work in remote locations under challenging conditions to support their families and power economic growth.
The overwhelming majority of offshore workers do their jobs skillfully and conscientiously, and are committed to protecting their colleagues and the environment. It is their lives that are threatened, their “back yard” that is polluted, and their jobs that are at stake if accidents occur.
Fortunately for us, energy exploration and production doesn’t stop on holidays. BOE wants offshore workers to know that their important contributions to society are greatly appreciated, on Labor Day and throughout the year.
Happy Labor Day!
Posted in Offshore Energy - General, Uncategorized | Tagged Labor Day, offshore safety, offshore workers | Leave a Comment »
Bud's Offshore Energy (BOE) 