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Posts Tagged ‘farmout’

Jamaica update: a small step forward, but United Oil and Gas has still not found a partner

Posted in energy policy, Jamaica, Offshore Energy - General, tagged , , , , , on September 17, 2026| Leave a Comment »

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.

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.

NameAssignationLocationMean/Mid Prospective Resources (MMBo / MMboe)
Lead 11FLeadWalton Basin1126
ZumbadorLeadMorant Basin925
ThunderballLeadMorant Basin603²
ColibriProspectWalton Basin406²
Lead DLeadWalton Basin382
MoonrakerLeadMorant Basin323²
Cascade CentralLeadPedro Bank275
StreamertailProspectWalton Basin221²
OrioleProspectWalton Basin220²
BoagLeadWalton Bank219
Lead 6ILeadWalton Bank205
GoldeneyeLeadMorant Basin174²
MoneypennyLeadMorant Basin173²
BlofeldLeadMorant Basin171²
EarspotLeadWalton Bank145
SquireLeadWalton Basin139
Lead 12MLeadWalton Basin133
Lead 6HLeadWalton Bank120
Lead 12VLeadWalton Basin111
Cascade SouthLeadPedro Bank101
Lead6QLeadWalton Bank101
Cascade EastLeadPedro Bank86
RumpspotLeadWalton Bank85
Lead 7PLeadWalton Bank76
Lead 7NLeadWalton Bank70
Lead 10KLeadWalton Basin70
Lead 12LLeadWalton Basin70
Lead 7TLeadWalton Bank60
BluefieldsLeadWalton Bank57
TodyProspectWalton Bank53²
MangoLeadWalton Basin53
GuaniLeadWalton Bank53
Lead 12ULeadWalton Basin41
JawsLeadMorant Basin39²
EuphoniaProspectWalton Bank38²
Lead 6GLeadWalton Bank38
BoobyLeadWalton Basin34
Lead 10BLeadWalton Basin32
Lead 7RLeadWalton Bank28
Lead 7SLeadWalton Bank28
TOTAL  7,284¹

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Jamaica: Can United Oil & Gas make it to the starting line (exploration well)?

Posted in Jamaica, Offshore Energy - General, tagged , , , on July 10, 2026| Leave a Comment »

United’s massive Walton-Morant license is the size of 896 Gulf of America lease blocks! That’s half the total number of active Gulf leases!

United O&G 2025 Financial Summary:

  • Loss after tax: ($1.25m) (2024: $2.44m loss)
  • 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.

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Important Jamaica update: United Oil and Gas gets the extension

Posted in Jamaica, Offshore Energy - General, tagged , , , , on January 23, 2024| Leave a Comment »

Walton-Morant license

“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 outlook in 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 Executive Officer, Brian Larkin, 1/22/2024

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Back to the drawing board for United Oil and Gas?

Posted in Jamaica, Offshore Energy - General, tagged , , , , on November 29, 2023| Leave a Comment »

Walton Morant License

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

United Oil and Gas

Comments:

  • 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.

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Jamaica update from United Oil and Gas as license expiration nears

Posted in Jamaica, Offshore Energy - General, tagged , , , , on November 13, 2023| Leave a Comment »

Walton-Morant license

For the past 2 years, BOE has been following the news releases on the Walton-Morant license offshore Jamaica. While the updates from United Oil and Gas are consistently upbeat, a repeating theme has been the need for more time to secure a partner and prepare for exploratory drilling.

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 period which 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.

United Chief Executive Officer, Brian Larkin

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