TIDMUOG
RNS Number : 8474U
United Oil & Gas PLC
03 August 2020
3 August, 2020
United Oil & Gas PLC
('United' or 'UOG' or 'the Company')
Update to Production Sharing Agreement on the Walton Morant
Basin, Jamaica
United Oil & Gas PLC (AIM: "UOG"), the high growth oil and
gas company with a portfolio of production, development and
exploration and appraisal assets is pleased to announce that it has
received approval from the Jamaican Government to take forward the
Walton Morant Licence, Jamaica, on a 100% operated basis.
Highlights
-- United has been assigned Tullow Jamaica Ltd's 80% equity in
the Walton Morant licence for a nominal fee, leaving the Company as
operator and 100% equity holder
-- Initial Exploration Period extended for 18 months by the Government of Jamaica
-- Highly prospective frontier basin with compelling evidence
for the presence of a working petroleum system
-- Work programme underway to further de-risk the Colibri
prospect and other targets ahead of a drill decision
-- A farm-out process is ongoing, and with United now as
operator, we look forward to taking full ownership of the process
and driving it forward
-- The Colibri prospect has been independently estimated to
contain gross unrisked mean prospective resources of 229 MMstb, and
up to 513 MMstb in a high-case scenario
Following agreement with the Jamaican Government, Tullow Jamaica
Ltd's 80% equity and operatorship has been transferred to United
for a nominal fee, and the PSA has been amended to extend the
Initial Exploration Period for 18 months. A portion of the licence
has been voluntarily relinquished, leaving a more focussed area of
c. 22,400km(2) that still incorporates all of the identified
prospectivity.
With the extension to the Initial Exploration Period, United now
has until the 31 (st) January 2022 before the drill-or-drop
decision is required.
United plan to complete a work programme to further de-risk the
high-graded Colibri prospect and perform detailed interpretation of
the numerous follow-on targets, including Moonraker,Thunderball,
Moneypenny, Jaws, Goldfinger, Vesper, Oriole, Earspot and
Rumpspot.. This cost-effective activity will be informed by the
feedback from companies who have engaged with United and the
previous licence operator in the data room process to date. It is
believed this work will have a significant impact on the continuing
farm-down process.
About the Walton Morant Licence
The amended Walton Morant Licence covers an area of 22,400km(2)
, and has numerous plays and prospects already identified across
three separate basins. 11 wells have been drilled to date (9
onshore, 2 offshore), and all bar one contained hydrocarbon
shows.
United farmed in to the Walton Morant licence in 2017. Since
then, significant seismic survey work has been carried out on the
licence, including the acquisition and interpretation of 2,250km(2)
of 3D seismic data and the re-interpretation of 3,650km of existing
2D seismic data.
Based on this new data, United invested in an updated
independent Competent Persons Report for the licence in 2019. This
identified a total gross un-risked mean prospective resource of 229
MMstb on the Colibri Prospect alone. In high-case scenarios, the
gross unrisked resource estimates for Colibri suggest up to 513
MMstb could be recovered. The Walton Morant licence covers an
extensive area (c. 22,400km2) and numerous follow-up structures
have been identified that would be significantly de-risked on
success at Colibri.
It is estimated that United will have acquired the results of
approximately $30m of investment by the previous operator in the
licence.
Brian Larkin CEO, United Oil and Gas PLC:
"Walton Morant has the potential to have a major impact on
United Oil & Gas and we are delighted to have successfully
concluded an agreement with the Jamaican Government to take on
operatorship and to develop this licence for the benefit of all
stakeholders.
"The United team know this licence well, having worked on it for
many years. Our experience and understanding of the licence and
conviction about it was critical to the Jamaican Government's
decision to grant us operatorship, 100% interest, and an 18-month
extension. We are confident in the quality of this licence and in
the opportunities that exist not only in the Colibri prospect, but
across the full 22,400km(2) area.
"We will move ahead with a cost-effective programme of activity,
building on the significant work that Tullow and United had
completed over the last two years and the feedback from a very
active farm-down process. Our goal will be to further de-risk the
asset, bring in partners and move ahead to plan a well on the
Colibri prospect. We would like to thank Tullow for their
contribution as operator, and for their assistance in enabling the
transfer. We would also like to thank MSET for their demonstration
of confidence in United and we look forward to working with them in
our new role as operator."
GLOSSARY
MMstb means million stock tank barrels
prospective resources means 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.
Jonathan Leather, an Executive Director of the Company, who has
over 20 years of relevant experience in the oil and gas industry,
has reviewed and approved the information contained in this
announcement. Dr Jonathan Leather is a qualified person as defined
in the guidance note for Mining Oil & Gas Companies of the
London Stock Exchange and is a member of the Petroleum Exploration
Society of Great Britain and the Society of Petroleum
Engineers.
The information contained within this announcement is deemed by
the Company to constitute inside information as stipulated under
the Market Abuse Regulations (EU) No. 596/2014 ("MAR").
ENDS
United Oil & Gas Plc (Company)
Brian Larkin, CEO brian.larkin@uogplc.com
Beaumont Cornish Limited (Nominated
Adviser)
Roland Cornish and Felicity Geidt +44 (0) 20 7628 3396
Optiva Securities Limited (Joint
Broker)
Christian Dennis +44 (0) 20 3137 1902
Cenkos Securities Plc (Joint Broker)
Joe Nally (Corporate Broking) +44 (0) 20 7397 8900
Derrick Lee and Pete Lynch +44 (0) 131 220 6939
Murray (PR Advisor) +353 (0) 87 6909735
Joe Heron jheron@murrayconsultants.ie
Camarco (Financial PR/IR)
Billy Clegg
Georgia Edmonds
James Crothers +44 (0) 20 3757 4983
Notes to Editors
United Oil & Gas is a high growth oil and gas company with a
portfolio of low-risk, cash generative production and development
assets across Egypt, UK, Italy and a high impact exploration
licence in Jamaica.
Led by an experienced management team with a strong track record
of growing full cycle businesses and partnered with established
industry players, the Company is well positioned to deliver future
growth through portfolio optimisation and targeted
acquisitions.
United Oil & Gas is listed on the AIM market of the London
Stock Exchange. For further information on United Oil and Gas
please visit https://www.uogplc.com/
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
UPDUPUBWRUPUGMP
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