TIDMUOG
RNS Number : 6645Q
United Oil & Gas PLC
21 February 2019
United Oil & Gas PLC / Index: LSE / Epic: UOG / Sector: Oil
& Gas
21 February 2019
United Oil & Gas PLC ("United" or the "Company")
CPR upgrades offshore Jamaica prospect to 229million barrels on
Tullow Oil-operated licence
Highlights
-- High impact licence further upgraded by CPR based on new 2018 3D seismic data
-- 229 MMstb of Gross Unrisked Mean Oil Prospective Resources
has been assigned by ERCE to the high-grade undrilled Colibri
prospect on the Tullow Oil-operated Walton-Morant licence, offshore
Jamaica - an increase of 10 MMstb gross compared to previous
estimates
-- The CPR assesses just one of a number of other structures the
Company has identified in the licence
-- The increase in Gross Unrisked Mean Prospective Resources
provides encouragement as progress is made towards a joint
farm-down process
United Oil & Gas Plc, the London Stock Exchange listed oil
and gas exploration and development company, is pleased to announce
the results of an independent Competent Person's Report ('CPR')
prepared by ERC Equipoise Ltd ('ERCE') covering the Walton-Morant
licence ('the Licence'), offshore Jamaica. This includes an
increase in Gross Unrisked Mean Oil Prospective Resources for the
high grade undrilled Colibri prospect to 229 MMstb recoverable from
219 MMstb, and an increase in the geological chance of success.
United holds a 20% equity interest in the 32,065 sq km Licence,
with the remainder held by Tullow Jamaica Ltd ('Tullow'), a wholly
owned subsidiary of leading independent oil and gas exploration and
production company Tullow Oil plc (LSE: TLW).
ERCE was commissioned to update its 2017 volumetrics for the
undrilled Colibri prospect following the acquisition of 2,250 sq km
of state-of-the art 3D seismic data, the first ever acquired
offshore Jamaica, in May 2018. The CPR represents the culmination
of a defined work programme to de-risk highly prospective
Cretaceous and Tertiary-aged clastic and carbonate reservoir
targets, including Colibri, that have been mapped by Tullow on 2D
seismic data. ERCE's updated volumetrics for Colibri are detailed
in the table below:
Gross Unrisked Prospective COS
Resources (MMstb) for Colibri (%)
prospect
---------------------- -------------------------------------
Colibri Prospect,
Walton-Morant UOG Net Mean
Licence Unrisked Prospective
Tullow Oil Operated 1U 2U 3U Mean Resources (MMstb)
---------------------- ------ -------- -------- --------- -----
ERCE 2019 Estimate 30 128 513 229 46 20
ERCE 2017 Estimate 20 104 496 219 44 16
------ -------- -------- --------- ---------------------- -----
Notes:
1) Prospects are features that have been sufficiently well
defined through analysis of geological and geophysical data that
they are likely to become drillable targets.
2) "Gross Unrisked Prospective Resources" are 100% of the
volumes estimated to be recoverable from an accumulation.
3) "Net Mean Unrisked Prospective Resources" are UOG's working
interest fraction of the mean estimate of the gross resources.
4) Prospective Resources reported here are "unrisked" in that
the volumes have not been multiplied by the geological chance of
success (COS), nor have they have been multiplied by the chance of
development (Pd).
5) The COS is an estimate of the probability that drilling the
prospect would result in a discovery as defined under SPE PRMS.
United Oil & Gas PLC CEO, Brian Larkin, said: "The
high-grade undrilled Colibri prospect has not only passed robust
and comprehensive technical scrutiny by an independent third party,
but ERCE has seen fit to upgrade the gross Mean Unrisked
Prospective Resources to 229 MMstb and to increase the likelihood
of success. This is a standout outcome, as it is not uncommon for
volumes to be downgraded when structures, that have previously been
identified on 2D seismic, are mapped on a 3D dataset. The upgrade
in the resources assigned to Colibri is testament to the work
carried out by the partners, the quality of the licence and the
strength of the geological model we have put in place. The next
step for Colibri would be making the decision to drill what could
be a transformational well for United and with this in mind we are
working closely with Tullow on a forward plan for the Licence.
"Gross Unrisked Mean Prospective Resources of 229 MMstb are
eye-catching, particularly for a company of our size. While not
included in this CPR, we have identified a number of other
structures which we believe would be significantly de-risked were a
well targeting Colibri to be successful.
"We have already seen considerable industry interest in the
Walton Morant Licence. This CPR and the ongoing seismic
interpretation will provide additional impetus to the joint farm
down process which we are confident will allow United to
participate in this licence at a low-cost exposure, while
continuing to offer considerable potential upside for
shareholders."
ERCE has given its consent to the reference to its CPR in this
announcement. ERCE confirms it has reviewed this announcement and
confirms that the estimates of Gross and Net Unrisked Prospective
Resources have been correctly extracted from the CPR.
The CPR has been signed by Mr Simon McDonald, Founder Director
of ERCE, a Chartered Engineer and the Past President of The Society
of Petroleum Evaluation Engineers (SPEE), who has over 40 years'
experience in the evaluation of oil and gas fields and acreage,
preparation of development plans and assessment of reserves and
resources.
**S**
For more information please visit the Company's website at
www.uogplc.com or contact:
United Oil & Gas Plc (Company)
Brian Larkin brian.larkin@uogplc.com
Optiva Securities Limited (Broker)
Christian Dennis +44 (0) 20 3137 1902
Beaumont Cornish Limited (Financial
Adviser)
Roland Cornish and Felicity Geidt +44 (0) 20 7628 3396
Murray (PR Advisor) +353 (0) 87 6909735
Joe Heron jheron@murrayconsultants.ie
St Brides Partners (Financial
PR/IR)
Frank Buhagiar and Juliet Earl +44 (0) 207 236 1177
Notes to Editors
United Oil & Gas plc (UOG) is listed on the main market of
the London Stock Exchange. United was established to explore,
appraise and develop low risk assets in Europe and to develop
higher risk, higher impact exploration projects in the Caribbean,
Latin America and Africa.
The following table outlines the Company's licence
interests:
Country Licence Operator / United Next Stage of Development
Administrator Interest
Italy Podere Gallina Po Valley 20% CPR complete
Licence Operations Infrastructure build
Pty Ltd 2019
Production from Podere
Maiar well expected
in 2020
Evaluation of exploration
opportunities continuing
-------------------- ---------------- ---------- -----------------------------
UK PL090 (Waddock Egdon Resources 26.25% Development drilling
Cross) UK Limited targeted in 2019
-------------------- ---------------- ---------- -----------------------------
UK PL090 (Exploration) Egdon Resources 18.95% Technical work to de-risk
UK Limited exploration targets
continuing
-------------------- ---------------- ---------- -----------------------------
UK P1918* (Colter) Corallian 10% Colter drill underway
Energy Limited Results due in March
-------------------- ---------------- ---------- -----------------------------
UK PEDL 330 Corallian 10% Technical work to de-risk
Energy Limited exploration targets
continuing
-------------------- ---------------- ---------- -----------------------------
UK PEDL 345 Corallian 10% Technical work to de-risk
Energy Limited exploration targets
continuing
-------------------- ---------------- ---------- -----------------------------
UK P2366* (Crown) United Oil 95% CPR Complete
& Gas Plc Seismic reprocessing
underway ahead of likely
farm down process
-------------------- ---------------- ---------- -----------------------------
Jamaica Walton-Morant* Tullow Jamaica 20% CPR complete with significant
Ltd upgrade
Interpretation of seismic
ongoing ahead of joint
farm down process
-------------------- ---------------- ---------- -----------------------------
*Offshore
Glossary of Technical Terms
bbl, bbls barrel, barrels
bbl/d barrels per day
CPR competent person's report
MM million
NPV net present value
Prospective Resources Prospective Resources are those quantities
of petroleum estimated, as of a given date,
to be potentially recoverable from undiscovered
accumulations by application of future development
projects. Prospective Resources have both
an associated chance of discovery and a
chance of development. They are further
subdivided in accordance with the level
of certainty associated with recoverable
estimates assuming their discovery and development
and may be sub-classified based on project
maturity.
PRMS The 2018 Petroleum Resource Management System
(SPE)
SPE Society of Petroleum Engineers
Stb stock tank barrels
1U Denotes the unrisked low estimate qualifying
2U as Prospective Resources
3U Denotes the unrisked best estimate qualifying
Mean as Prospective Resources
Denotes the unrisked high estimate qualifying
as Prospective Resources
The sum of a set of numerical values divided
by the number of values in the set
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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