Bud's Offshore Energy (BOE)

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.

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