United Oil & Gas Plc (AIM: “UOG”), the oil and gas company with a high-impact exploration asset in Jamaica and a development asset in the UK, is pleased to announce that it has secured an early two-year extension to the Walton Morant licence offshore Jamaica, now valid until 31 January 2028, where it holds a 100% working interest.
The Company would like to formally acknowledge and thank the government and people of Jamaica for the continued support of oil and gas exploration in Jamaica. The extension provides UOG with the security required to advance discussions with farm-in partners and progress technical work, reinforcing the significant exploration potential of this licence.
With the extended tenure confirmed, 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.
Comments:
- The Jamaican govt not only granted a second 2 year license extension, but they did so 10 months before the deadline. Could the upcoming elections, scheduled for later this year, have been a factor in the timing of their decision?
- Does the govt have that much confidence in a company that is dependent on finding a partner to fund an exploration well?
- If the license had been allowed to expire, was the govt concerned about administrative or political constraints associated with re-offering the license area?
- United Oil and Gas excels at promotion and isn’t shy about making bold statements about their Walton-Morant license. They have been talking for several years about strong interest from prospective partners, but no deal has been made.
- United’s estimate of 7 billion barrels for the license area represents the sum of the prospective unrisked resources for each prospect. The resource estimate is dependent on oil being discovered and developed at each prospect, and is thus speculative.
Bud's Offshore Energy (BOE) 