Supports the farm-out process by providing potential farm-in partners clarity on the execution pathway for a future exploration campaign
Identifies a double-digit pool of suitable available rigs all assessed against capability, timing and regional positioning
Affirms that the key Colibri target well (406 MMbo) and the deeper-water Thunderball follow-on (603 MMbo) could be targeted in a single exploration campaign
Identifies a Jamaica-based logistics model that combines local port infrastructure and services with specialist regional offshore services
United’s massive Walton-Morant license is the size of 896 Gulf of America lease blocks!
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.
“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 barrelsof 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 stillhopeful for a positive outcome for Jamaica.
Below are UOG’s resource assessments for the prospects in their license area.
Group cash balances at 31 December 2025: $1.7m (2024: $0.8m)
“The company currently has no revenue and is operating at an annual loss and shows a current net liability as at 31 December 2025. Its only funding options are through warrant exercises, a Jamaican farmout deal covering back and future work program costs, or equity financing.”
The company’s future is dependent on finding a partner to fund an exploratory well. In that regard, United’s optimism has yet to result in a farmout deal after years of trying. The discovery risks seem comparable to those of other prospective frontier wildcats. So why have they been unable to find a partner? Are their terms unreasonable?
This outsider continues to wonder why United has been granted multiple license extensions, the latest through 1/31/2008. Does the govt have that much confidence in a company that is dependent on finding a partner to fund an exploration well? 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.
“We are very pleased to announce the agreement of terms for a two-year license extension in Jamaica. United has dedicated significant effort to the technical aspects of this asset, which has over 2.4 billion barrels of unrisked oil potential and the promising Colibri prospect. This extension will empower us to confidently continue our farm-out campaign, seeking a strategic partner to unlock the immense potential in this region. The support from the Government of Jamaica underscores our relationship and the optimistic industry outlookin Jamaica. We will continue to focus on the recent positive interest that has been shown by a number of parties, and with the extended licence, this is a significant opportunity for the benefit of all stakeholders.”
United Chief ExecutiveOfficer,Brian Larkin, 1/22/2024
Further to the announcement of 9th November, the Company has been informed by the counterparty that had been identified as a preferred potential partner, that they no longer wish to pursue further discussions in relation to participation in the Walton Morant Licence. The Company will now focus on the recent positive interest that has been shown by other parties in potentially participating in this high impact exploration opportunity and United and our advisors will continue in our efforts to secure a partner. The Board believes that the renewed interest in exploration opportunities worldwide which is being driven by the strong future demand for oil and gas, will support our farmout efforts.
The Company continues to engage with the Jamaican authorities to secure an extension to the current licence period which expires at the end of January 2024, with a negotiated work programme that comprises additional technical work that would further de-risk the licence prior to the drilling of the exploration well. This work is aimed at materially enhancing the risked value of the Company’s interest in the Licence. Additional updates on both the farmout process and licence extension will be provided in due course
I’m very curious about the companies that United has been talking to, but that information is understandably being withheld. I would hope that the Jamaican government is being kept informed, since they will presumably have to approve the farmout.
Conducting “additional technical work” is a common lease/license extension tactic. It will be interesting to see how the Jamaican government responds, particularly if a firm date for an exploratory well has not been provided.
Per the most recent update (below), United announces that they have identified a “preferred potential partner” and are seeking an extension on their license. So far, we have only heard from United. As the expiration date of the license approaches, an update from the Jamaican government’s perspective would seem to be appropriate.
The Company is currently engaged in discussions with a preferred potential partner that has been identified through the farmout process, to participate alongside United in the Walton Morant Licence in Jamaica. Furthermore, the Company is engaging with the Jamaican authorities to secure an extension to the current licence periodwhich expires at the end of January 2024, so as to provide sufficient time to progress additional technical work on the block to support the drilling of an exploration well. Additional updates on both the farmout process and licence extension will be provided in due course.
We are encouraged by the continued progress in relation to the farmout process in Jamaica, as we look to unlock the material value contained in this block and deliver value to our stakeholders, including the people of Jamaica. We are entering a critical stage in the farm-out process and will provide an update to the market as this progresses.
